AFMC - Is The FOMC Backing Down?
2024-04-09 06:00:00 ET
Summary
- During the March FOMC meeting, the Committee held its target rate range constant at 5.25-5.5% and released a new Summary of Economic Projections, which reaffirmed that it expected to make three rate cuts in 2024.
- Since that meeting, it appears that the bump in inflation in January and February and the strong labor market have caused participants to reassess their view of the path for policy.
- Chairman Powell reaffirmed the current stance of policy and suggested that it may be appropriate to start cutting rates this year, but he was silent on when and by how much.
By Robert Eisenbeis, Ph.D.
During its March FOMC meeting, the Committee held its target rate range constant at 5.25-5.5% and released a new Summary of Economic Projections (SEP), which reaffirmed that it expected to make three rate cuts in 2024. Not only did the projections change, but it appeared that more of the participants coalesced on the view that three rate cuts would be appropriate (see " March 2024 FOMC ). Nine of the participants thought three rate cuts would be appropriate, while five thought two would be sufficient....
Is The FOMC Backing Down?