Global markets are closely watching the Fed’s interest rate decision. While keeping the policy rate stable seems certain, President Powell’s remarks will be closely monitored.

The tariffs imposed by US President Donald Trump on major trading partners of the country and the retaliations from these countries are increasing the risk perception in this period where geopolitical risks persist. Concerns about triggering inflationary pressures in the US through Trump’s trade war via tariffs remain prevalent.

The focus of investors has shifted to the interest rate decision by the Fed and the speech that Fed President Powell will make after the decision tonight. While it seems certain that the Fed will keep the policy rate stable in the pricing in the money markets, signals from the policy text and Powell’s verbal guidance are expected to have an impact on the direction of the markets. The interest rate decision will be announced at 10 p.m.

CONTACTS IN RUSSIA-UKRAINE WAR

On the other hand, the limited contacts made between the US and Russia to end the Russia-Ukraine war have created a sense of optimism.

In relation to this, in a statement on his Truth Social account, Trump noted that his phone call with Russian President Putin went very well and was productive. Trump used the expression, “We agreed on an immediate ceasefire in all energy and infrastructure areas,” in his statement.

FITCH LOWERS GROWTH EXPECTATION

Meanwhile, the international credit rating agency Fitch Ratings has reduced this year’s growth expectation for the global economy due to the trade war initiated by the US from 2.6% to 2.3% and next year’s expectation from 2.3% to 2.2%. According to the data released in the country, the number of new housing starts began with an increase of 11.2% in February, exceeding market expectations, while the number of building permits issued fell by 1.2% on a monthly basis in February.

Industrial production in the US increased by 0.7% in February, surpassing market expectations.