From CNBC: 2024-06-12 14:19:54

Federal Reserve Chair Powell announced no changes to interest rates, with only one rate cut projected for 2024, down from previous forecasts. The “terminal rate” is now at 5.1%, indicating a target range of 5%-5.25%. The dot plot showed mixed opinions, with some members projecting no cuts and others predicting up to two reductions.

While March forecasts predicted three rate cuts in 2024, the current target range is 5.25% to 5.5%. Traders had anticipated two cuts before the Fed’s announcement. Looking ahead to 2025, the central bank expects a total of four rate cuts, equivalent to a full percentage point reduction in the fed funds rate.

Read more: Here’s the Fed’s new rate forecast that’s moving the markets