Stable ratings of Germany and expectations ahead of the Fed's decision

The upcoming FOMC meeting, scheduled for April 29, 2026, remains the focus of investors. The current Fed interest rate is 3.50-3.75%, and market expectations are almost unanimous regarding its maintenance at this level. Only 1% of the market anticipates a hike to the range of 3.75-4.00, suggesting that policymakers may want to wait for more economic data before making a decision on further actions. From a market perspective, stable interest rates may support the current level of greed among investors, as indicated by the Fear & Greed Index at 66/100. Despite a one-point drop compared to the previous week, investors still show a positive risk attitude.

The rating agency Standard & Poor's has confirmed Germany's credit ratings at AAA/A-1+ with a stable outlook. This confirms Germany's strong economic position, which remains one of the pillars of financial stability in Europe. The AAA rating is the highest possible score, meaning that Germany is perceived as a country with very low credit risk. The stable outlook suggests that no changes in the credit rating are expected in the near future, which is a positive signal for investors. Maintaining a high rating can influence the stability of government bond markets and strengthen investor confidence in the eurozone as a whole. Moreover, stable ratings can contribute to an increase in foreign investments and favorable financing conditions in the international market.

In the coming days, the eyes of the market will be focused on the FOMC meeting and any potential comments regarding future monetary policy in the USA. Stable ratings for Germany are a positive signal for European markets; however, investors will closely monitor any changes in global economic dynamics that could impact central bank decisions. It is also worth watching macroeconomic data releases that may influence future interest rate decisions.