At 2 a.m. tonight, the Fed kept its benchmark interest rate unchanged at 5.25%-5.5% for the seventh time, in line with market expectations. #美联储连续第七次维持基准利率不变

Hawkish dot plot:

Shows that the Fed has delayed the start of rate cuts, which may be as late as December. Fed officials believe that there will be at most one rate cut this year, two fewer than expected in March, because the inflation rate is approaching the 2% target at a slower rate than expected. The dot plot shows that among the 19 officials, four officials believe that there will be no rate cuts this year, seven officials believe that there will be one rate cut, and eight officials believe that there will be two rate cuts. #美联储何时降息？

➡️

It seems that the Fed will cut interest rates later and slower than investors expected, but the Fed's policy rate is expected to fall rapidly next year, with a full percentage point cut in both 2025 and 2026.