FED WILL HOLD RATES STEADY AS INFLATION DIMS HOPES FOR POLICY EASING

As U.S. central bank officials wrap up their latest two-day policy meeting on Wednesday, they are expected to release a new statement and provide comments through Federal Reserve Chair Jerome Powell. These remarks could offer a clearer understanding of how recent disappointing inflation readings have influenced expectations for interest rate cuts this year. It's highly probable that the Fed will maintain its benchmark overnight interest rate, with investors showing nearly 100% certainty of this outcome. Ahead of the meeting, officials have not indicated any support for altering the policy rate.

However, market participants are eagerly awaiting the new policy statement scheduled for release at 2 p.m. EDT (1800 GMT), as well as Powell's subsequent press conference. These events are anticipated to shed light on the extent to which the recent challenges in battling inflation have impacted the likelihood of any near-term reductions in borrowing costs.

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