FOMC left interest rates unchanged and the 24-year interest rate cut forecast declined to 1 time - next year 4 times

“Further slow progress has been seen” towards inflation targets - statement

“We need to see more good data” — Chairman Powell

Jerome Powell, Elections of the US Federal Reserve

Photographer: Al Drago/Bloomberg

The US Federal Open Market Committee (FOMC) predicted that the number of interest rate cuts in 2024 would be only once, and indicated that more interest rate cuts would be carried out in 2025. The policy of maintaining policy interest rates at a high level for a long period of time in order to control inflation has come to light. The FOMC in March predicted three interest rate cuts by the end of the year.

　　At the regular meeting held on June 11-12, FOMC decided to leave the main policy interest rate unchanged. The decision was unanimous. Interest rates have been left unchanged for 7 consecutive meetings. The derivation target range for federal funds (FF) interest rates is 5.25-5.5%.

　　According to the median forecast of FOMC participants, it is expected that interest rates will be cut 4 times in 25 years. The number of interest rate cuts has increased from the previous forecast (3 times).