Reported 7 months ago
The latest Federal Reserve (Fed) dot plot shows a reduction in expected rate cuts for 2024 from three times as predicted in March to only one time. Analysts speculate this eliminates the possibility of the Fed initiating loosening measures before the November US election, leading to a potential delay in rate cuts until December. Despite softer inflation data in May, the Fed's conservative stance now suggests only one rate cut this year, possibly in December, with traders still indicating a 60% chance of a cut in September. Some believe the dot plot may not accurately reflect the impact of the May consumer price index data, but the baseline forecast remains for a single rate cut in December.
Source: YAHOO