VONG - Buy 5 Growth ETFs as Fed Stays Put Eyes Rate Cut | Benzinga
The Fed opted to maintain its benchmark interest rate within a range of 5.25% to 5.50%, a level it has maintained since July 2023 and has revised its rate cut prediction. While previously predicting three rate cuts for the year, the Fed scaled back its estimate to just one due to sticky inflation.
However, there was a division among officials, with eight estimating two cuts, seven predicting one and four foreseeing no cuts for the year. Despite the reduced rate cut expectations for 2024, Fed officials increased their collective forecast for 2025, anticipating a median of four additional rate cuts.
Inflation Outlook
The Fed revised its 2024 inflation forecast, expecting prices to end the year at 2.8% compared to the previous estimate of 2.6%. The Fed stressed on the importance of inflation returning to the 2% target before considering rate cuts.
Is There Any Optimism?
The Fed's policy statement reflected some newfound optimism, noting "modest further progress" toward the inflation target, a departure from previous statements. Fed chair Powell acknowledged the risks of waiting too long or acting too early on rate cuts.
Notably, U.S. annual inflation ...