June S&P 500 futures (ESM23) are down -0.29%, and June Nasdaq 100 E-Mini futures (NQM23) are down -0.57% this morning after three major U.S. benchmark indices finished the regular session mixed as hawkish signals from the Federal Reserve weighed on sentiment, while investors also awaited key U.S. retail sales data.
The Federal Reserve held its policy rate at 5.0%-5.25% on Wednesday, breaking a streak of 10 consecutive rate increases over 14 months. At the same time, the Summary of Economic Projections released by the central bank revealed that most policymakers now expect the Fed’s benchmark rate to reach a peak of 5.6% by the end of 2023, up from the previous projection of 5.1%, implying that at least two more quarter-point hikes are in the cards. Federal Reserve Chairman Jerome Powell stated that the central bank would consider the cumulative impact of hikes when making future decisions regarding whether or not to implement further rate increases. In addition, Powell conveyed a positive outlook on the battle against inflation, noting that multiple factors are showing progress.
