Fed Holds Steady, Cuts Back on Expected Cuts

By Felix Richter – Statista

As has been widely expected after the latest economic data, the Fed decided to keep its policy rate steady for the seventh consecutive time at its June meeting, while also dialing back expectations for rate cuts in 2024. Following a two-day meeting of the Federal Open Market Committee (FOMC), Fed chairman Jerome Powell announced that the target range for the federal funds rate would be kept at 5.25 to 5.50 percent, while also acknowledging the “considerable progress” that has been made over the past two years.

Staying true to its recent flip-flop course in terms of rate cut expectations, the Fed once again adjusted those expectations downwards, with FOMC members now forecasting just one rate cut this year, down from three that had been predicted at the penultimate policy meeting in March.