Here's the Fed's new rate forecast that's moving the markets

The central bank's"terminal rate" for 2024, or the rate at which its benchmark fed funds rate will peak, went up to 5.1%, equivalent to a target range of 5%-5.25%. That means that the Fed is only forecasting one quarter-point rate cut from24/7 San Diego news stream: Watch NBC 7 free wherever you are

The so-called"dot plot," which indicates how 19 FOMC members, both voters and nonvoters, showed four officials in favor of no cuts this year, while seven members projected one reduction. The remaining eight officials forecast two rate cuts for 2024.Back in March, the Fed projected three rate cuts this year with the fed funds rate hitting 4.6%. After a cool inflation report Wednesday but before the Fed's new forecast release, traders were pricing in two cuts this year.

For 2025, the central bank anticipated four rate cuts in total or a full percentage point reduction in the benchmark fed funds rate.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Fed's Bostic: Fed has to be cautious about first rate moveAtlanta Federal Reserve President Raphael Bostic said on Tuesday that the restrictive monetary policy is having an impact on rate-sensitive sectors and delaying investment, per Reuters.
Source: FXStreetNews - 🏆 14. / 72 Read more »

EUR/USD trims early gains after Fed dot plot shifts away from rate cuts, Fiber falls from 1.0850EUR/USD pivoted away from 1.0850 on Wednesday after the Federal Reserve (Fed) held rates as markets broadly expected, but a shift in the Fed's 'dot plot' of interest rate expectations is warning that interest rates are likely to continue holding higher for longer Fed leaves policy rate unchanged at 5.25%-5.
Source: FXStreetNews - 🏆 14. / 72 Read more »