After a cooler-than-expected inflation report helped stocks surge Wednesday morning, all eyes shifted to the Federal Reserve for its highly anticipated interest-rate decision.
The central bank decided to hold rates steady at the June Federal Open Market Committee (FOMC) meeting, a move that was widely anticipated by Wall Street. But the new “dot plot,” which represents FOMC officials’ interest-rate projections for each of the next three years in a matrix grid, showed a median forecast for just one interest rate cut in 2024, compared with three in March. The Fed also projected slightly higher inflation ahead, and in order to cut rates, Fed Chair Jerome Powell said he needs to see “more good data” that confirms inflation is truly under control.
