TechFlow News — At 2:00 AM Beijing time on December 14, the Federal Reserve announced its latest interest rate decision, keeping the target range for the federal funds rate unchanged at 5.25%-5.5%, still at the highest level in 22 years, in line with market expectations.
Regarding forward guidance on interest rates, the Fed's December statement said the committee will continue assessing new data and its implications for monetary policy, emphasizing that in determining the extent of any additional policy tightening needed to bring inflation back toward 2% over time, it will take into account the cumulative effect of policy tightening, the lagged impact of monetary policy on economic activity and inflation, and evolving economic and financial conditions. Compared to the November statement, the word "any" was added in the December version. Meanwhile, the Fed's updated dot plot suggests policymakers anticipate three rate cuts in 2024, totaling 75 basis points.
