Fed's Federal Open Market Committee (FOMC) announced its monetary policy decision today at 7:00 pm BST. In-line with market expectations, interest rate were left unchanged, with Fed Funds rate staying in the 5.25-5.50% range. There were some changes to economic projections, however. Statement repeated that Fed does not expect it will be appropriate to reduce policy target range until gaining greater confidence inflation is moving sustainably towards 2% target.
Most importantly, new dot-plot shows a median rate forecast of 5.1% for 2024, meaning just a single rate cut from current levels. However, split between those who saw 1 and those who saw 2 was almost equal. Core PCE inflation forecast for this and next year was boosted as well.
Fed Funds rate forecast
- 2024: 5.1% vs 4.6% in March projection
- 2025: 4.1%vs 3.9% in March projection
- 2026: 3.1% vs 3.1% in March projection
Core PCE inflation forecast
- 2024: 2.8% vs 2.6% in March projection
- 2025: 2.3% vs 2.2% in March projection
- 2026: 2.0% vs 2.0% in March projection
Real GDP forecast
- 2024: 2.1% vs 2.1% in March projection
- 2025: 2.0% vs 2.0% in March Projection
- 2026: 2.0% vs 2.0% in March projection
Unemployment rate forecast
- 2024: 4.0% vs 4.0% in March projection
- 2025: 4.2% vs 4.1% in March projection
- 2026: 4.1% vs 4.0% in March projection
PCE inflation forecast
- 2024: 2.6% vs 2.4% in March projection
- 2025: 2.3% vs 2.2% in March projection
- 2026: 2.0% vs 2.0% in March projection
Source: Federal Reserve
Source: Federal Reserve
BREAKING: Eurozone economy slows down unexpectedly❗️EURUSD without direction 🇪🇺
Economic Calendar: The Central Bank Festival in Full Swing
🔴 Fed Conference: Powell remains as a governor (LIVE)
BREAKING: Fed keeps interest rates unchanged 📌 EURUSD extends below 1,1700 📉
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
