“While the policy interest rate was left unchanged, Fed officials are still suggesting rate cuts are likely this year. However, we are doubtful that a majority will be convinced on the case for cuts before December, by which time they may feel the need to move by a more aggressive 50bp cut. Fed still projecting rate cuts this year. Unsurprisingly there was no policy rate change from the Federal Reserve at today’s FOMC meeting. This leaves the Fed funds target rate range at 4.25-4.5%. The accompanying statement adds little, repeating that activity is expanding at a “solid pace” while inflation “remains somewhat elevated”. It was a unanimous decision.”
Morten W. Langer
