“What better time to lower interest rates than now? Even a third-grader knows that,” Trump said, quoted by finam.ru.
Today, March 17, the two-day meeting of the Fed starts. The probability of keeping the rate at the previous level of 3.5-3.75% is estimated at almost 100%. This is evidenced by the FedWatch tool. The probability of lowering rates by 0.25 percentage points is estimated at only 0.9%.
The Fed Funds rate is the key instrument of the US monetary policy, influencing the cost of borrowed funds (loans and mortgages), inflation rate, economic growth and, as a consequence, global financial markets. An increase in the rate makes borrowing more expensive, slowing the economy and inflation, while a decrease stimulates spending and investment.
