Federal Reserve announcements and official reports

Fed Keeps Rates Unchanged at 23-Year High, Projects Only One Rate Cut in 2024

Jun 12, 2024, 06:06 PM

The U.S. Federal Reserve has decided to keep its benchmark interest rate unchanged at 5.25%-5.50%, marking the seventh consecutive meeting without a rate change. According to the latest projections, the Fed now anticipates only one rate cut in 2024, down from the three cuts predicted in March. The decision reflects the Fed's cautious approach amid persistent inflationary pressures. The updated dot plot shows that four Fed officials foresee no rate cuts this year, seven expect one cut, and eight predict two cuts. Additionally, the Fed has raised its 2024 inflation forecast to 2.6%, up from the previous 2.4%, and adjusted the long-term neutral rate to 2.8% from 2.6%. The central bank also maintained its GDP growth and unemployment rate forecasts for 2024 at 2.1% and 4%, respectively. The interest rate remains at a 23-year high.