Home / Business and Economy / Fed Braces for Rare Split Decision as Rate Cut Looms
Fed Braces for Rare Split Decision as Rate Cut Looms
30 Jul
Summary
- Fed expected to keep rates steady, but with dissenting votes
- Investors look for clues on future rate cuts in Fed statement
- Tech giants like Meta and Microsoft report earnings this week
The Federal Reserve is preparing to announce its latest policy decision, and the outcome may not be as straightforward as usual. While almost no one expects the Fed to lower rates at this meeting, economists predict that the decision will not be unanimous, with two Fed governors dissenting - the first time this has happened since 1993.
Investors will be closely scrutinizing the Fed's policy statement and Chair Jerome Powell's press conference for any clues on when the central bank might be ready to cut rates. The market is currently pricing in a 63.4% chance of a rate cut in September, and a 49.2% chance in October.
Alongside the Fed's decision, the market is also bracing for a slew of earnings reports from major tech companies this week. Investors will be watching to see if the sector's recent rally, fueled by increased spending on artificial intelligence, can be sustained. Companies set to report include Facebook-parent Meta Platforms and software giant Microsoft.
The ongoing trade negotiations between U.S. and Chinese officials in Stockholm, Sweden, remain a key focus, as the two sides work to extend a tariff truce that is set to expire on August 12. Any failure to reach an agreement could have significant implications for the global economy.
