Federal Reserve Expected to Maintain Interest Rates Amid Independence Concerns

Allianz Global Investors' Chief Investment Officer for Public Markets, Michael Krautzberger, anticipates that the Federal Reserve's decision to keep interest rates unchanged this week will be supported by all voting members, except possibly the dovish member Milan. According to Odaily, Krautzberger highlighted in a report that since this meeting will not update the economic forecast summary or the dot plot, market attention will shift to how Chairman Powell addresses the current challenges to the Fed's independence from executive power. Krautzberger suggests that Powell's comments during the press conference on this issue might have a greater impact on the market than the interest rate decision itself. This is particularly true if Powell hints at his plans regarding whether he intends to remain as a board member until 2028 after his term as chairman ends in May.