Newswise — The Federal Reserve's interest rate decisions can significantly affect businesses and finance. Markets expect interest rates to remain steady at the Federal Open Market Committee's next decision on May 1. However, recent inflation data has raised concerns that transitioning to an annual 2% inflation rate may take longer than expected.

The market is closely watching for clues on when interest rate cuts might occur. Fixed income markets suggest that rate cuts could begin at one of the FOMC's meetings in July or September. This indicates that interest rates are unlikely to move at the Fed's June meeting, with the first-rate cut potentially coming at least a year after the FOMC's last rate hike in July 2023.

Businesses and investors need to stay informed about these developments. Upcoming inflation releases may better inform an interest rate cut  than statements from U.S. Federal Reserve officials. FOMC officials have emphasized that they are looking for specific data in inflation reports before considering rate cuts, and they are currently waiting to see that data. This highlights the need for businesses and investors to closely monitor inflation data and its potential impact on interest rates and the economy.

As the Federal Reserve continues to monitor economic conditions and adjust interest rates accordingly, news outlets may seek expert commentary on these developments. Platforms like Newswise can help connect reporters with experts who can provide insights into how these decisions may impact businesses and the economy.

 

Newswise Call for Expert Pitches and Research:

The Federal Reserve's decisions on interest rates can have far-reaching effects on businesses globally. 

Market expectations and reactions to these decisions can impact borrowing costs, consumer spending, and overall economic growth. As the Federal Open Market Committee's next decision approaches on May 1, businesses must stay informed and prepared for potential shifts in interest rates. 

If you would like to comment on this topic, contact us at [email protected].

Research: 

https://www.forbes.com/sites/simonmoore/2024/04/22/what-to-expect-from-the-feds-may-interest-rate-decision/?sh=4c19f0a4186c

https://www.ft.com/content/8c5da64b-766e-4993-86f5-aac95342432a

https://www.cbsnews.com/news/what-will-happen-to-mortgage-rates-after-the-feds-april-meeting-expert-predictions-vary/

 

Newswise Experts

Michael Noel

Professor

Expertise: EconomicsIndustrial - OrganizationAntitrustEnergy -  EconomicsPricingEconomic - StrategyOil And Gas - UkraineRussia

Noel specializes in competition economics and is best known for his work on dynamic price competition in the oil and gas industry. He pioneered the now large professional literature on price cycles and price volatility in gasoline markets and is internationally known as a leading competition expert in the industry. He is available to discuss the effects of the current situation on oil prices and inflation.

Bisrat Kinfemichael

Assistant Professor of Accounting and Finance

Expertise: Economy - Economics - Economics And Finance - Recession - Federal Reserve - Unemploymen - tInflation - Macroeconomics - Labor Trends - Finance & Development

Bisrat Kinfemichael earned his Ph.D. in Economics from Southern Illinois University and his M.A. and B.A. in Economics from Addis Ababa University. Before joining New York Tech, he taught economics courses at Bradley University, Southern Illinois University, and Addis Ababa University. Kinfemichael’s non-academic experience includes working as a marketing researcher for Population Services International, a Washington, D.C.-based global health organization, and for Coca-Cola Sabco, a multinational company. 

Anna Grosman

Assistant Professor in Innovation and Entrepreneurship

Expertise: Innovation - Entrepreneurship - Dividends Policy And Payout - State Capitalism - Crowdfunding - Economic Markets

Anna is an Assistant Professor in Innovation and Entrepreneurship at Loughborough University with a strong background in investment banking and mergers and acquisitions. She can comment on recent changes in regulation, such as crowdfunding, debates about female board directors on boards, increased state intervention (from an economic perspective only), big data, and privacy/security/ownership concerns.

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