Last week we had the latest FOMC meeting and although rates were once again unchanged, we received a plethora of updates in terms of monetary policy thinking.
Alongside no change in Fed Funds Rate, the statement itself saw very few changes as well:
Much of the market moving information from the FOMC meeting was in relation to future guidance around when rate cuts will begin, and how many are expected.
Due to a few hotter-than-expected inflation prints in recent months, many went into the meeting expecting the FOMC to have a hawkish tone and to walk back the potential of rate cuts occurring this year due to inflation accelerating again in recent months.
With the release of the new dot plots, however, we see that nothing has changed the Fed’s view enough to walk back their guidance to rate cuts starting this year:
Overall, we have a few takeaways:
Keep reading with a 7-day free trial
Subscribe to fejau’s Substack to keep reading this post and get 7 days of free access to the full post archives.