March surprise: What will the Fed Reserve do this week?

As anticipation builds ahead of the Federal Reserve’s highly anticipated March meeting, the major US stock indexes have retreated from their record highs, setting the stage for a pivotal week in the financial markets.

On Wednesday, the tension surrounding the Fed’s monetary policy decision will reach its climax.

At 2:00 p.m. ET, the US central bank is scheduled to unveil its latest policy stance and updated economic projections, with investors eagerly awaiting clarity on a crucial question: does the Fed still anticipate three interest rate cuts in 2024?

Recent data indicating persistent inflation levels, contrary to earlier expectations of a rapid decline, has led market forecasts to adjust, now projecting three rate cuts instead of six for the year.

Consequently, the focus shifts to whether the Fed will adjust its stance in response to this prolonged inflationary pressure.

The New York Stock Exchange

Earnings reports

In addition to the Fed’s meeting, this week’s calendar features notable corporate earnings reports, including those from Nike, Lululemon, FedEx, and Micron, scheduled for Thursday.

The IPO market will also witness Reddit’s public debut under the ticker symbol ‘RDDT’ on Thursday, offering insights into the resurgence of new listings in 2024.

Rising food prices drive consumers to embrace buy now, pay later

Meanwhile, Nvidia’s annual GTC conference on Monday will draw attention as investors seek updates on the company’s product roadmap amidst surging demand for its chips driven by the AI boom.

With regards to the Fed, investors are not anticipating any changes to the benchmark interest rates, expected to remain within the range of 5.25%-5.50%, consistent since July last year.

Instead, the focus will be on the Fed’s Summary of Economic Projections (SEP) and Chairman Jerome Powell’s subsequent press conference, which will commence 30 minutes after the policy statement release.