AFMC - June FOMC Meeting: Just One Cut This Year... But Do They Really Mean That?
2024-06-14 21:20:00 ET
Summary
- The Federal Open Market Committee (FOMC) kept the benchmark policy rate at 5.25%-5.50% at its June meeting for the seventh consecutive meeting.
- More significantly, the latest dot plot revealed that the FOMC’s median projection has removed two cuts from their 2024 rate projections.
- The GDP growth forecasts for 2024, 2025 and 2026 were left unchanged (2.1%, 2.0% and 2.0% respectively).
By Seema Shah, Chief Global Strategist
The Federal Open Market Committee (FOMC) kept the benchmark policy rate at 5.25%-5.50% at its June meeting for the seventh consecutive meeting. More significantly, the latest dot plot revealed that the FOMC’s median projection has removed two cuts from their 2024 rate projections. From the FOMC perspective, that leaves just one 25 basis point reduction this year - market expectations had been for the dot plot to show two cuts in 2024....
June FOMC Meeting: Just One Cut This Year... But Do They Really Mean That?