The Federal Open Market Committee meeting dominated the markets this week, with the Fed deciding to leave rates unchanged at 5.25%-5.5%, as widely expected.
Dot Plot Indicates 1 More Rate Hike, Fewer Cuts in 2024: The median preference for the projected fed funds rate at the end of 2023 held steady after Wednesday’s Fed decision, aligning with the previous June forecast at 5.6%. This suggests the Fed is leaning toward one additional rate increase in either one of the two remaining meetings this year. FOMC members have scaled back their projected rate cuts for next year, now indicating a total of 50 basis points of cuts for 2024, a more hawkish shift from the previous June projection of a full percentage point reduction.
