Strong US growth looks set to boost Federal Reserve officials’ belief that they can afford to take their time on cutting rates, as they prepare to meet on Wednesday.
The Federal Open Market Committee will almost certainly vote to leave benchmark interest rates unchanged at a 23-year high of 5.25-5.5 per cent, after a lengthy effort to tame rampant inflation.
However a question remains over the extent to which Fed chair Jay Powell will hint at cuts on the horizon. About half of investors are currently pricing in a move at the following Fed meeting in March, but many economists point instead to late spring or early summer.
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