In this week's regular March meeting, the Federal Open Market Operations (FOMC) will maintain its current interest rate policy. It will leave the Federal Funds Rate (FFR) unchanged at the current 5.25%-5.50% level, pushing interest rate cuts towards the middle of the year.
That's according to the CME'sFedWatch Tool, which calculates the probability of changes in this critical interest rate for the nation's monetary policy. This time, it points to a 99% probability of FFR remaining in the current range, up from 96% a week ago and 90% a month ago.
"I feel confident that the March meeting is a hold-the-course-on-rates event," Matt Willer, Private Asset Management expert, said. "Of interest will be the comments based on recent reports this week that signal inflation isn't on an orderly, consistent decline, but pockets are still running hot. Powell has been clear that they will hold the line until they are definitively satisfied that inflation is in check - at or around their target."
