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Fed left its benchmark funds rate unchanged at 5.25% to 5.50% as was largely expected while pointing out that there has been some progress in the fight against inflation in recent months, a statement that differed from the previous statement that said there was lack of further progress.
“Inflation has eased over the past year but remains elevated. In recent months, there has been modest further progress toward the Committee’s 2 percent inflation objective,” the statement notes.
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In their “dot plot” projections, the committee now projects fed funds rate benchmark at 4.1% at the end of 2025, up 0.2% from the March outlook.
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The committee now see four cuts next year versus three projected in March.
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For 2024, the committee signaled just one rate cut instead of the three cuts projected in March.
