Federal Reserve Board Of Governors Will Meet Today — Traders Factor In 4 Rate Cuts This Year

The Federal Reserve said a closed meeting of the Board of Governors of the Federal Reserve System will occur on Monday at 11:30 a.m.

The central bank said the Board of Governors will review and determine the advance and discount rates to be charged by the Federal Reserve banks.

The meeting comes at a time when President Donald Trump’s tariff policies ignited a market rout, and the administration’s defiant stance over the weekend led to a global rout in equities.

With traders and economists expecting a rise in inflation following the tariff implementation, fears about a potential recession have led investors to call for further rate cuts.

Earlier, the Fed’s dot plot projection indicated two quarter-point rate reductions in 2025.

The latest CME FedWatch Tool data shows traders are factoring in four 25 basis-point rate cuts this year, with the first reduction expected in June.

Investors will be keenly watching out for the upcoming inflation data for any hints on the possible rise in price pressures.

JPMorgan CEO Jamie Dimon has reportedly said that Trump’s policies will boost prices on both domestic and imported goods, dragging a U.S. economy that had already been slowing.

“Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon said, according to a CNBC report.

“We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”

A Bloomberg report stated that emergency rate cuts are rare and were last employed by the central bank in early 2020 during the outbreak of COVID-19.

The S&P 500 and the Nasdaq Composite fell nearly 2% on Monday morning, while the Dow Jones slid nearly 2.5%.

The SPDR S&P 500 ETF Trust (SPY) was down 1.52%, while the Invesco QQQ Trust, Series 1 (QQQ) traded lower by 1.09%.

Also See: ‘Magnificent 7’ Stocks Get Battered By Trump Tariffs – Tesla CEO Elon Musk’s Cryptic Post Has Investors Hooked

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