[Click eStock] "US Expected to Hold Interest Rates Steady in March... Focus on Dot Plot"

On the 15th, Kiwoom Securities analyzed that the benchmark interest rate is expected to remain unchanged at the March U.S. Federal Open Market Committee (FOMC) meeting, and emphasized the need to pay attention to changes in the forecast and the dot plot.

Economist Kim Yumi stated, "The March FOMC is scheduled for next week, and the policy rate is expected to be held steady at 5.25?5.50%, with little disagreement in the market," adding, "Rather than an interest rate adjustment, attention should be focused on whether there are any changes in the Fed's economic forecasts and the dot plot compared to what was disclosed in December last year."

She continued, "This is because it can provide clues about the timing of the Fed's rate cuts," and added, "With high expectations for a rate cut in June, if the timing is expected to be delayed to the second half of the year, volatility in the financial markets could expand again."

She also noted, "At the December FOMC last year, the Fed projected this year's economic growth rate at 1.4%," and predicted, "However, considering that major investment banks (IBs) and research institutions have recently revised the U.S. economic growth rate upward to around 2% since the beginning of the year, it is highly likely that the Fed will also revise its economic growth forecast upward."

She further explained, "While views on unemployment and inflation are not expected to change significantly, an upward revision of growth forecasts could raise expectations for a soft landing of the economy, while also stirring concerns that the timing of rate cuts may be somewhat delayed."

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