This week, the market will be closely monitoring the Federal Reserve’s interest rate decision, which is set to be announced on Wednesday. Attention will particularly be on the Fed’s dot plot, which indicates future interest rate projections, to see if the benchmark shifts upward, downward, or it remains unchanged.

Currently positioned at 2, the dot plot is a tool used by the Federal Open Market Committee (FOMC) to express its interest rate outlook. Market participants and economists carefully observe these projections for insights into future interest rate changes.

Therefore, interpreting the lower level cluster implies a need for a reduction in the policy rate, while higher clusters indicate a potential risk of tightening.

Meanwhile, economic sentiment continues to be volatile because of worries about trade and tariffs. This is causing a tough situation with a slowing economy and increasing worries about inflation.

Despite recent economic data indicating that inflation is trending positively, with last month’s Consumer Price Index (CPI) and Producer Price Index (PPI) both falling more than anticipated, the impact of tariffs may not become clear until the latter half of the year.

The true impact of tariffs........

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