Economist Mohamed Al-Erian’s expectations for the US Federal Reserve’s decision
Economic expert Mohamed Al-Erian said during press statements today, Monday, that the US Federal Reserve may follow the European Central Bank by keeping interest and monetary policy unchanged, and not follow the Bank of Canada in reducing the volume of bond purchases or adjusting the schedule for raising interest.
The economist indicated that the US Federal Reserve may amend its expectations for economic growth, but will follow it with warnings about the Corona virus and the state of uncertainty, and that it will remind the markets that it is ready to do more in the event of more negative risks, and it will also reduce the risks of rising inflation, and its rise higher than expected.
Muhammad Al-Erian indicated that the US Federal Reserve will attach its mission to a return to normal monetary policies in the coming period.
Markets are awaiting the release of the US Federal Reserve’s decisions after the end of its meeting on April 27-28 next week. The decisions include a statement of interest and then the bank’s governor’s comment, Jerome Powell, on the decisions through a press conference that follows the decisions. These decisions will have a strong impact on the dollar’s movements in the currency market.