The Fed has long expressed far more caution in its predictions than investors.
, participating members of the Federal Open Market Committee announced they anticipate just one 25-basis point cut to the federal funds rate this year. A single cut, likely at the‘s final FOMC meeting of the year, would mean interest rates would remain at their 23-year high until after Joe Biden and Donald Trump face off at the
Whereas the central bank projected three rate cuts at the start of 2024, bond markets had priced in the probability of more than twice that many cuts. On the heels of the first good consumer price index report of the year, Treasurys futures pounced on the probability that the Fed would deliver at least one rate cut at the final September FOMC meeting before the election. But despite the FOMC acknowledging “modest” progress on bringing inflation back down to its maximum 2% target, Fed members now see both inflation and interest rates remaining much higher than they projected back in the last SEP released in March.estimate from 2.
The Fed now expects the median federal funds rate to remain above 4% in 2025 and 3% in 2026. In other words, higher for longer — both higher inflation and higher interest rates — is here to stay.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Wisconsin election officials fear voter confusion over special and regular election taking place on same dayBoth the special election and the election for the two-year termed position will take place on Nov. 5.
Read more »
Hillary Clinton roasted for post equating D-Day to 2024 Election DayFormer Secretary of State Hillary Clinton outraged X users Thursday in her attempt to commemorate D-Day's anniversary in a post.
Read more »
Inflation falls for first time in 2024, but remains higher than Federal Reserve's goalJustin Boggs is a writer for the E.W. Scripps company. Justin covers anything from politics to sports and entertainment.
Read more »
Thomas Massie introduces bills to audit, abolish the Federal ReserveLegislation has been introduced by Rep. Thomas Massie, R-Ky., has that seeks to end the Federal Reserve central banking system which has been in operation since 1913.
Read more »
Federal Reserve Chair Jerome Powell working from home after testing positive for COVID-19Federal Reserve Chair Jerome Powell has tested positive for COVID-19 and is experiencing symptoms. Powell tested positive late Thursday. A spokesperson said Powell is following guidance from the Centers for Disease Control and Prevention, and he is staying away from others and working at home.
Read more »
Federal Reserve Chair Jerome Powell working from home after positive COVID-19 testFederal Reserve Chair Jerome Powell has tested positive for COVID-19 and is experiencing symptoms
Read more »