DWS: The US Federal Reserve is expected to keep interest rates unchanged in April, but with a hawkish stance

Golden Finance April 24 | DWS Chief US Economist Christian Scherrmann stated that the geopolitical conflict in Iran has quickly shown initial signs in economic data. The overall CPI annual growth in March surged by nearly one percentage point, reaching 3.3%, while consumer confidence dropped to a historic low. Core inflation has not shown signs of being affected by energy prices, and long-term inflation expectations may remain stable. The current situation prompted the Federal Reserve to ignore market turmoil and keep interest rates unchanged at the April FOMC meeting. However, to ensure that inflation expectations remain controlled, this move will inevitably be accompanied by a hawkish stance.