Fed meeting today: Federal interest rate sees no change
How many interest rate cuts did the Federal Open Market Committee project by the end of 2025, and how does this compare to their previous projection in March?
The Federal Open Market Committee projected five interest rate cuts by the end of 2025, totaling 1.25 percentage points. This is a decrease from their previous projection in March, which indicated six rate cuts.
What new level did the Federal Open Market Committee set for the long-run interest rate, and how does this compare to the previous level?
The Federal Open Market Committee (FOMC) signaled that it believes the long-run interest rate is higher than previously indicated. The new projection for the long-run rate of interest, essentially a level that neither boosts nor restricts growth, moved up to 2.8% from the previous 2.6%. This indicates that the higher-for-longer narrative is gaining traction among Fed officials.
What was the Federal Reserve's decision regarding the key interest rate during the Wednesday meeting?
The Federal Reserve decided to keep its key interest rate unchanged during the Wednesday meeting. This decision was made as the central bank awaits more data to determine when to cut rates. The Federal Open Market Committee also signaled that just one cut is expected before the end of the year, and that the long-run interest rate is higher than previously indicated.