USMC - Federal Reserve Dot Plot: Conflicted And Open To Persuasion
2024-06-14 23:00:00 ET
Summary
- Recent focus has centered on the Federal Open Market Committee’s dot plot, which now suggests just one rate cut in 2024.
- A closer examination reveals the committee is divided, with more participants (8 out of 19) anticipating two rate cuts this year than those expecting only one (7) or none at all (4).
- Monthly core inflation fell to its slowest pace since October 2022, and core services ex-shelter - the Fed's preferred CPI measure - was negative for the first time since 2021.
By Seema Shah, Chief Global Strategist
Recent focus has centered on the Federal Open Market Committee’s dot plot, which now suggests just one rate cut in 2024. However, a closer examination reveals the committee is divided, with more participants (8 out of 19) anticipating two rate cuts this year than those expecting only one (7) or none at all (4). A series of subdued inflation reports, along with further signs of a rebalancing labor market, could pave the way for multiple rate cuts this year. ...
Federal Reserve Dot Plot: Conflicted And Open To Persuasion