TechFlow news: The Federal Reserve held its benchmark interest rate steady at 5.25%-5.50% for the seventh consecutive meeting, in line with market expectations.
The Fed's dot plot indicates a projected 25-basis-point rate cut in 2024. No officials expect three or more cuts this year, down from 10 previously. For 2025, four rate cuts are expected (up from three projected in March).
In its FOMC statement, the Committee reiterated its aim of achieving maximum employment and 2% inflation over the long run. The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year. It believes that it will not be appropriate to reduce the target range for the federal funds rate until it has greater confidence that inflation is sustainably moving toward 2%. In assessing the appropriate stance of monetary policy, the Committee will continue monitoring incoming data for implications on the economic outlook. Should risks emerge that could impede achievement of the Committee’s goals, it will adjust policy as needed.
