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The Federal Reserve announced that it would maintain the target range of the federal funds rate between 5.25% and 5.5%. This is in line with market expectations and is the seventh consecutive time that interest rates have remained unchanged since September last year.

The Fed's dot plot shows that only one interest rate cut is expected in 2024, two fewer than the forecast in March.

The median forecast for the federal funds rate from 2024 to 2026 is 5.1%, 4.1%, and 3.1%, respectively (the forecasts in March were 4.6%, 3.9%, and 3.1%, respectively). The median forecast for the long-term federal funds rate is 2.8%, which was 2.6% previously.

Economic activity and employment:

Recent indicators show that economic activity continues to expand at a solid pace. Job growth remains strong and the unemployment rate remains low.

Inflation:

Inflation has eased over the past year, but remains high. Moderate progress has been made in achieving the 2% inflation target.

Fed's goals and policies

Long-term goals:

The Fed seeks to achieve maximum employment and 2% inflation over a longer period of time. It is believed that the risks to achieving employment and inflation goals have become better balanced over the past year.

Policy measures:

The target range for the federal funds rate will continue to be maintained at 5.25% to 5.5%. Continue to reduce holdings of Treasury bonds, agency debt and agency mortgage-backed securities. Resolutely committed to returning the inflation rate to the target of 2%.

Future adjustments:

In considering any adjustments to the target range for the federal funds rate, the incoming data, the changing outlook, and the balance of risks will be carefully evaluated. It is not appropriate to lower the target range until there is greater confidence that the inflation rate will continue to move toward 2%.

Voting situation

The members who voted in favor of this monetary policy action include:

Chairman Jerome H. Powell Vice Chairman John C. Williams Thomas I. Barkin Michael S. Barr Raphael W. Bostic Michelle W. Bowman Lisa D. Cook Mary C. Daly Philip N. Jefferson Adriana D. Kugler Loretta J. Mester Christopher J. Waller

The Fed's decision reflects its cautious attitude in the current economic environment. Despite strong economic activity and employment growth, inflation remains a major concern. Future monetary policy will continue to be influenced by various economic indicators, especially inflation and employment data. $BTC $ETH $BNB #TopCoinsJune2024 #美联储连续第七次维持基准利率不变