Institutions: Expect Fed Meeting to Emphasize Inflation and Employment Risks

Odaily News According to Daniel Laufni, Head of Fixed Income at Mediolanum International Funds, even before the deterioration of the Gulf situation, the market had anticipated that the Federal Reserve would keep interest rates unchanged at this week's meeting, and this is now a certainty. Recent economic data shows persistent slowing inflation and a deteriorating labor market, leading the institution to initially expect a dovish stance from this pause. However, that is no longer the case. The Federal Reserve is expected to convey a cautious wait-and-see attitude. The policy statement is likely to mention war risks and incorporate two-way language regarding the future path of interest rates, emphasizing both the upside risks to inflation and the downside risks to the labor market. (Jin10)