Fed Likely to Reaffirm Wait-And-See Stance Amid Low Near-Term Visibility -- Market Talk

Dow Jones16:14

0814 GMT - The Federal Reserve is expected to hold rates at its March 17-18 meeting with a minority dissent in favor of a cut, says Michael Krautzberger, CIO Public Markets at Allianz Global Investors. Fed Chair Powell is expected to reaffirm a wait-and-see stance, citing low near-term visibility but continued medium-term optimism from AI- and productivity-driven supply gains, he says in commentary. The Fed may slightly temper its December Goldilocks scenario of robust growth, improving labor markets and declining inflation, he says. Allianz's base case remains for a final rate cut under incoming Chair Kevin Warsh in the 2H, with risks skewed toward no easing unless the economy or labor market weakens materially, he adds. (monica.gupta@wsj.com)

 

(END) Dow Jones Newswires

March 16, 2026 04:14 ET (08:14 GMT)

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