From Yahoo Finance: 2024-06-12 05:00:34

Investors are anticipating the Federal Reserve to adjust their 2024 rate cut predictions. A fresh inflation reading is expected from the Consumer Price Index, with core CPI likely to decrease to 3.5% year-over-year. Despite this, the Fed is expected to maintain existing interest rates at a 23-year high. The dot plot projections for 2024 had previously indicated three rate cuts, but expectations have now dropped to just one cut due to increased caution from Fed officials and inflation concerns. The Fed will also provide updated forecasts for inflation, the economy, and unemployment during their policy meeting today. Markets are currently pricing in a 48% chance of rate cuts starting in September according to the CME Group. The Fed’s decision will be announced at 2 pm ET, followed by Chair Jay Powell’s press conference at 2:30 pm ET.



Read more at Yahoo Finance: Fed expected to dial back 2024 rate calls after digesting new inflation data