Growth stocks have looked particularly weak over the last month amid fears of a hawkish Fed, and those fears came true yesterday when the U.S. central bank announced its policy decision. While it kept rates unchanged, as was widely expected, the dot plot showed only two rate cuts of 25 basis points each in 2024 - which is half of the previous projection.
Also, the median projections showed Fed fund rates at 3.9% at the end of 2025, which is 50 basis points higher than the previous projection. In a nutshell, the Fed’s September meeting reaffirmed the “higher for longer” sentiment as it looks to tame inflation.
