What will be the changes in FED Policy? How will it affect India? - Watch Video

The majority of experts predict that the Federal Reserve will stop raising interest rates starting next week for the first time in 15 months and maintain its current monetary policy until the end of the year, despite the US economy's resilience and persistent inflation.

According to analysts surveyed by Bloomberg, the Federal Open Market Committee will maintain rates at their meeting on June 13–14 in the range of 5%–5.25%. However, authorities will have to make a more decisive decision on what to do in July.

Last month, Chair Jerome Powell made a suggestion that the tightening campaign should be put on hold as he assessed the delayed impacts of previous actions and the impact of recent bank failures on loan availability.

The policy benchmark is anticipated to be 5.1% at the end of 2023 according to the FOMC's median prediction in its quarterly "dot plot" Summary of Economic Projections, which is similar to what experts anticipate the actual rate to be and consistent with the March projection. In contrast, the markets are anticipating a quarter point increase in July and a possible reduction of the same level in December.