Allianz Investment: Fed Expected to Hold Rates Steady This Week, Powell's Remarks May Draw More Attention Than Rate Decision

Odaily News Michael Krautzberg, Chief Investment Officer of Public Markets at Allianz Global Investors, stated that except for dovish Governor Waller possibly dissenting, the Fed's decision to keep interest rates unchanged this week is expected to gain support from all other voting members. He noted in a report that since this meeting will not update the Summary of Economic Projections or the dot plot, market focus will shift to how much Chairman Powell can address the current challenges to the Fed's independence from executive power. Krautzberg believes that Powell's stance on this issue during the press conference may influence markets more than the rate decision itself—especially any hints regarding whether he plans to continue serving as a Governor until 2028 after his term as Chairman ends in May. (Jin10)