2024-06-13 02:50:00 ET
Summary
- The Fed left monetary policy unchanged, but their updated projections signals just one rate cut before year-end versus the three they suggested in March.
- They are now projecting four rate cuts in 2025 versus the three they had previously, but this means the policy rate is expected to end next year 25bp higher than in their March forecasts.
- If the Fed does cut by September, there is not a whole lot of room for the 10yr to stay below 4% for too long.
By James Knightley , Padhraic Garvey, CFA , Chris Turner
Fed suggests they may cut just once this year, but the data ultimately determines the outcome
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Federal Reserve Keeps Policy Unchanged, Signals Just One Rate Cut Before Year-End