Fed's January Meeting Unlikely To Shift Market Expectations

According to Odaily, analysts from RBC Capital Markets suggest that the Federal Reserve's January meeting is unlikely to alter the current market narrative. The analysts noted in a report that the market has largely anticipated a pause in interest rate hikes during the interval between meetings, and Federal Reserve officials have not attempted to counter this expectation. However, they indicated that even if the Federal Reserve pauses rate cuts, it is almost certain to maintain a bias towards easing. This aligns with current market pricing, although RBC's forecast suggests no further rate cuts this year. They added that without new forecasts, any potential market reaction might hinge on Federal Reserve Chair Jerome Powell's press conference.