Markets are awaiting and attention is turning towards the next meeting of the Monetary Policy Committee of the US Federal Reserve, which is scheduled to be held at the end of January 2024, which comes in light of the current geopolitical and economic tensions affecting the global economic situation, as Jerome Powell, Governor of the US Federal Reserve, stated in December 2023 that the Federal Reserve is expected to start reducing the interest rate in 2024, which reached the level of 5.5%, and this came as a result of high inflation rates, reached its highest level in May 2022 at a rate of 9.1%, and it is considered the highest level of inflation rates since 1981, and inflation rates began to decline, reaching in December 2023 to 3.1%, and with the beginning of the year and the issuance of the first reading of the US consumer price index, which shows inflation rates, it was found that the index rose to 3.4%, higher than the previous reading, which was 3.1%, which is still higher than the target rate for the US Federal Reserve at 2%. Therefore, the US Federal Reserve's Monetary Policy Committee is expected to install an interest rate at its next meeting, with the expectation of the continuation of the tight fiscal policy to control the rise in inflation rates, especially with the Federal Reserve's commitment to reach inflation rates to the target of 2%.

The previous chart shows the return of interest rates to rise in the last reading after reaching 3.1%.

The previous chart shows that the federal interest rate will continue at 5.5% with August 2023

This decision may affect the continued rise of the dollar against a basket of currencies to reach the level of 104.25 while the interest rate continues to be fixed.

 

The previous chart shows the continued rise of US indices, as the Dow Jones index reached the level of 38109, which is the highest level in its history after breaching the previous summit at the level of 37000, and therefore it is expected that the index will continue to rise to reach the level of 38650.