BREAKING: Fed leaves rates and 2024 median dot-plot unchanged

FOMC announce monetary policy decision today at 6:00 pm GMT. Fed funds rate was left unchanged in the 5.25-5.50% range, in-line with market expectations. Policy statement was unchanged compared to the previous one. New set of economic projections pointed to a higher GDP growth this and next year compared to December projections as well as higher core PCE inflation projections for this year. New dot-plot showed median expectations unchanged for this year at 4.60% (3 cuts), while median for 2025 was revised higher from 3.60% to 3.90% (also 3 cuts from end-2024 levels).

While new 2024 median rate expectations was unchanged compared to December projections, the distribution of votes changed. Only one Fed member sees more than 75 basis points of easing this year., while in December 5 members expected it. 

Source: Federal Reserve

Source: Federal Reserve