The inflation data released last week further underscores the significance of the FOMC meeting. Consumer prices in the United States saw a 0.4 per cent increase in February, marking a 3.2 per cent rise from a year earlier, surpassing market expectations. This inflationary trend may influence the Fed's decision-making process, potentially prolonging its stance on maintaining current interest rates. Notably, the Fed has held interest rates steady since July 2023.
Stock markets would take cues from the biggest event of the week -- the US Fed interest rate decision, besides tracking the trends in global markets and trading activity of foreign investors, analysts said. Last week, a heavy decline in small cap, mid cap firms, foreign fund outflows and elevated crude oil prices in the international market dented investors' sentiments.
Experts said equity markets may remain volatile in the near-term amid a host of global central bank's monetary policy decisions lined up during the week. "This week will place a significant focus on monetary policy, as the Fed will begin its two-day policy meeting on March 19. The US Federal Reserve will announce its interest rate decision after its two-day policy meeting on March 20, 2024," said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd.
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