Lates News

Economics professor Phil Powell said he expects the Fed to maintain interest rates at this meeting. Powell said that before the peace agreement between Washington and Tehran, financial markets were concerned about further inflation due to the soaring oil prices and the inflation rate had already exceeded 4%. In the coming months, the Fed is more likely to raise interest rates rather than cut them. However, the Iran peace agreement is undoubtedly a huge positive news, which may cause oil prices to fall more than expected, thereby reducing the possibility of a rate hike in the short term. This decision is the first interest rate decision since Powell took office as Fed chairman. The market may think that the new Fed chairman is more willing to cut interest rates than his predecessor, but the fact proves otherwise. The Fed's decision is based on very technical data and procedural considerations rather than emotional decisions. As for the prospect of rate cuts, Powell said that since inflation must first decrease, it is unlikely that the Fed will cut interest rates before the end of the year.