Federal Reserve Meeting This Week Could Signal March Interest Rate Cut

Investors weigh the odds as inflation slows and consumer spending remains strong

The Federal Reserve is set to hold a two-day policy meeting this week, with investors assigning roughly even odds to the prospect of an interest rate cut in March.
Recent economic data shows a deceleration in inflation numbers, with the Fed’s preferred gauge dropping to 2.9% in December, the first time it has been below 3% since early 2021.
Despite inflationary concerns, consumer spending remains robust, potentially due to the decrease in inflation.
Key data releases this week include the monthly jobs report, job openings and consumer confidence data, and a quarterly employment cost index.
The Fed's decision could be influenced by the strength of the outlook for consumer spending, as well as the recent economic data.