BREAKING: FOMC keeps rates unchanged!

FOMC announced its latest monetary policy decision today at 7:00 pm BST. There was no surprise - rates were held unchanged with Fed Funds rate remaining in the 5.00-5.25% range. This was the first time in 15 months when the Fed decided to keep the level of interest rates unchanged.

A new set of economic projections showed a higher GDP growth forecast for 2023 as well as lower unemployment rate. However, Fed sees less progress on core inflation than it did in March projections. When it comes to dot-plot, median end-2023 rate forecast increased to 5.6% while end-2024 rate forecast is 4.6%

Investors' attention now turns to the press conference of Fed Chair Powell, which is scheduled to begin at 7:30 pm BST.

FOMC sees higher rates than it did in March projections as well as higher GDP growth and slower progress on core inflation. Source: Federal Reserve

June dot-plot. Source: Federal Reserve