The main content of the Fed's latest interest rate decisio#TheFed kept the benchmark interest rate unchanged for the seventh consecutive time
Interest rate decision:
The Fed kept the interest rate unchanged for the seventh consecutive time, maintaining the current interest rate level unchanged.
Inflation expectation adjustment:
The Fed raised its inflation expectation for 2024 from 2.4% to 2.6%.
Expected rate cut:
According to the median forecast, there will be only one rate cut in 2024. A 100 basis point rate cut is expected in 2025.
Inflation status:
The Fed said that although inflation has eased, it is "still at a high level."
Core PCE inflation expectations:
The median core PCE inflation expectation for 2024 was raised from 2.6% to 2.8%.
Interpretation of the Fed's statement
The Fed's statement shows that they are cautious about the easing of inflation and believe that the current inflation level is still high and requires further observation and data support. Therefore, despite the improvement in inflation data, the Fed is in no hurry to cut interest rates and will maintain a meeting-by-meeting model in future policy decisions, that is, making decisions based on new data and economic conditions at each meeting.
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