Federal Reserve's January Meeting Unlikely To Shift Market Expectations

According to PANews, analysts from RBC Capital Markets have indicated that the Federal Reserve's January meeting is unlikely to alter the current market narrative. In a recent report, analysts noted that the market has largely anticipated a pause in interest rate hikes during the inter-meeting period, and Federal Reserve officials have not attempted to counter this expectation. However, they mentioned 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 in the absence of updated forecasts, any potential market reaction might hinge on Federal Reserve Chair Jerome Powell's press conference.