US Fed Meeting Live Updates: Wall Street slips ahead of Powell-led FOMC verdict, Dow Jones sheds 100 points

US Fed Meeting Live Updates: Wall Street slips ahead of Powell-led FOMC verdict, Dow Jones sheds 100 poin

US Fed Meeting Live Updates: The US Federal Reserve will announce its sixth interest rate decision for 2024 on September 18 after a two-day Federal Open Market Committee (FOMC) meeting. The US central bank is widely expected to reduce its borrowing costs by 25 basis points (bps) or 50 bps from the current 5.25 per cent - 5.50 per cent for the first time in four years.

With inflation barely above their target level, US Fed officials have been shifting their focus toward supporting a weakening job market and achieving a rare “soft landing," which curbs inflation without causing a sharp recession. 

A half-point rate cut would signal that the US Fed is as determined to sustain healthy economic growth as it is to conquer high inflation. The move is expected to be only the first in a series of Fed rate cuts that will extend into 2025.

Fed chair Jerome Powell-led rate-setting panel ended its fifth policy-setting meeting for 2024 on July 31 and unanimously voted to keep the policy rate at the 23-year high in the range of 5.25 per cent—5.50 per cent. The US central bank has maintained borrowing rates steady for 12 straight months to bring down inflation in the world's largest economy.

After raising the policy rate by 5.25 percentage points since March 2022 in one of the swiftest Fed reactions to combat the worst outbreak of inflation in 40 years, the central bank has held the rate on hold since July 2023 to anchor in high inflation and consistently bring it down toward the two per cent target range.

US Fed Meeting Live: Oil trades 1% lower after mixed storage data ahead of US Fed verdict; Brent crude at $73, faces resistance $75/bbl

International crude oil prices fell on Wednesday as the market cautiously awaited a rate cut announcement from the US Federal Reserve, while investors digested a mixed crude and fuel storage report out of the United States.

Brent crude futures for November lost 55 cents, or 0.8 per cent, at $73.15 a barrel. US crude futures for October shed 53 cents, or 0.7 per cent, to $70.66.

Crude inventories fell by 1.6 million barrels to 417.5 million barrels in the week ending September 13, said the Energy Information Administration (EIA) 

Brent has staged a recovery since falling below $70 to its lowest since December 2021 on September 10. It faces resistance at around $75 due to weak global refinery margins that signal sluggish demand.

US Fed Meeting Live: European Stocks drop ahead of Fed’s rate decision; Novo slips

European stocks fell as attention turned to the Federal Reserve’s highly anticipated interest-rate decision and any signals on its policy outlook. Novo Nordisk A/S shares slipped on worries that Ozempic could be targeted for a US price cut.

The Stoxx Europe 600 Index was down 0.4 per cent at 9:38 a.m. in London. Technology and health care stocks lagged, while autos and banks outperformed.

Novo Nordisk fell two per cent as it said its blockbuster diabetes shot Ozempic was “very likely" to be one of the next drugs targeted for a price cut in bargaining with the US government’s Medicare program.

Europe’s benchmark gauge has had a volatile recovery from the summer selloff, as the prospect of monetary-policy easing hasn’t fully tempered signs of an economic slowdown. The index still stands about two per cent below its August record high.

After the European Central Bank reduced rates last week, focus Wednesday is on the Fed’s policy meeting, where officials are expected to lower rates for the first time in four years. Traders are split between wagers on a 25- and 50-basis point reduction, according to swaps data.

18 Sep 2024, 10:53:20 PM IST

US Fed Meeting Live: Gold edges higher as markets gear up for Fed's rate verdict

Gold prices edged higher on Wednesday as investors are widely expecting the US Federal Reserve to deliver its first interest rate cut in more than four years later in the day.

Spot gold rose 0.1 per cent to $2,570.79 per ounce as of 12:20 p.m. ET (1620 GMT), hovering below a record high of $2,589.59 hit on Monday. US gold futures were up 0.2 per cent to $2,597.80.

Spot silver fell one per cent to $30.39 per ounce, after hitting a two-month high on Monday. Platinum eased 0.8 per cent to $974.05. Palladium was down 4.8 per cent at $1,062.06.

18 Sep 2024, 10:42:09 PM IST

US Fed Meeting Live: D-Street experts see 25 bps rate cut by US Fed

Rohit Arora, CEO and Co-founder, Biz2Credit and Biz2X:

"Right now, asset prices are high, with housing affordability at its lowest in over 10 years, and job losses are rising in key areas like tech and retail. Consumer demand has dropped sharply, with retail sales falling by three per cent last quarter, creating a recession-like environment. 

Inflation is still high, cutting into people's spending power and slowing the economy. It’s expected that the Fed will lower interest rates by 25 bps to help counteract the economic slowdown—GDP growth is down to 1.2 per cent—and to offer some relief to the struggling job market."

18 Sep 2024, 10:29:17 PM IST

US Fed Meeting Live: What India's latest inflation print suggests

Ranen Banerjee- Partner and Leader Economic Advisory, PwC India:

"The lower than expected WPI number is primarily owing to a fall in fuel and electricity components as global crude prices have softened given the Chinese demand worries as well as headwinds in Europe and US. The vegetables component has also dropped significantly that is expected given the boost in production that takes place during monsoon months. 

However, extremely high inflation prints of onion and potato does not bode well for the thalinomics as the food prices and hence the thali prices of the population will see upward price pressures. This is also the worry that has been expressed by the RBI Guv on the food inflation risk continuing. The high intensity of rainfall in many areas and extent of consequent damages to crops will determine the food inflation trajectory and hence we can expect the MPC to be cautious and continue with its pause on policy rates in its next meeting."