Analyst: Market Players Expect The Fed To Be 'Dovish' At The End Of The Second Quarter Of 2024

Illustration. (Photo: Doc. Antara)

JAKARTA - MNC Sekuritas analyst Herditya Wicaksana alias Didit said market participants expect that the Fed's new central bank will act dovish at the end of the second quarter of 2024.

"Investors expect that in June-July 2024 the Fed will cut the rate, after circulating there will be a cut rate this March," said Didit, quoted from Antara, Wednesday, March 20.

Actually, according to him, market participants hope that the Fed will cut the benchmark interest rate at the Federal Open Market Committee (FOMC) on Wednesday, March 20, US time.

However, US economic data including good inflation have yet to reach the target desired by the Fed.

"However, seeing the release of data which, although can be said to be good, has not yet reached the desired target," said Didit.

Therefore, it is estimated that the Fed Fund Rate (FFR) will not change this March.

"Consensus estimates are that there has been no change to the Fed, which seems to be still in line with investor expectations after some time ago the FOMC Meeting has been explained by the Fed's future policy," said Didit.