Fed Meeting Today: Live Analysis on Interest Rates, Powell Speech
BloombergThanks for joining us. Here are five key takeaways from Wednesday’s Federal Open Market Committee rate decision and Federal Reserve Chair Jerome Powell’s press conference: The FOMC median now projects a single quarter-point cut in 2024, two fewer than the previous round of quarterly forecasts in March, in light of higher inflation earlier in the year. Powell, in his press conference, seemed to downplay the importance of the “dot plot,” noting that there is a high degree of uncertainty, that the committee’s individual forecasts were all plausible and that any move would depend on incoming data. Powell said Fed officials are “coming to the view that rates are less likely to go down to their pre-pandemic level.” He points out that the so-called neutral rate is a long-term rate, and that the Fed continues to see current rates as restrictive., boosting their median estimate to 2.8% from 2.6% in March. Powell said Fed officials are “coming to the view that rates are less likely to go down to their pre-pandemic level.” He points out that the so-called neutral rate is a long-term rate, and that the Fed continues to see current rates as restrictive.