Here are the key points to watch in the Fed's July interest rate decision:
1. Will Fed Chairman Powell give clues about the prospect of a rate cut by the FOMC in September?
2. How many Fed policymakers will dissent from the decision statement?
3. The Fed's view of the U.S. economy.
At 02:00 Beijing time on July 31, the Fed will release its interest rate decision statement, but there will be no "quarterly" summary of economic forecasts. Fed Chairman Powell will hold a regular press conference at 02:30. The market generally expects the Fed to keep the federal funds rate unchanged in the 4.25%-4.5% range, marking the fifth consecutive time rates have remained unchanged. However, two governors may cast dissenting votes, which would mark the first time since 1993 that two governors have simultaneously opposed a policy decision. According to the CME FedWatch Tool, the federal funds futures market currently believes that the probability of a "25 basis point rate cut by the Fed in September" is about 68.00%. [Odaily]