The Federal Reserve keeps interest rates unchanged and estimates that it will only cut interest rates once before the end of this year

The Federal Reserve continues to maintain the benchmark interest rate corridor at a 23-year high of 5.25-5.5%, and this is the 7th consecutive regular meeting to keep interest rates stable. It is estimated that interest rates will only be cut once before the end of the year.

The Federal Reserve raised interest rates by 1 yard (0.25 percentage point) and 2 yards (0.5 percentage point) in March and May of the previous year, respectively. In June, July, September, and November, they increased 3 yards (0.75 percentage points) 4 times in a row, and only 2 yards in December.

Last year, the first, second, and third meetings of the Federal Reserve raised 1 yard each. Interest rates were not raised at the 4th meeting, 1 yard hike for the 5th time, and did not raise interest rates for the 6th, 7th, and 8th times. Interest rates remained unchanged at the first, second, and third meetings of this year.

The interest rate dot chart that the market is closely watching shows that the central bank will become more hawkish in 2024. At the same time, the Commission predicts that a more aggressive path of interest rate cuts will be adopted in 2025, and it is expected that interest rates will be cut four times. Analysts warned that the Federal Reserve will not rule out that it will not cut interest rates until 2025, and there may be a wave of sharp pullbacks in US stocks.

In March 2024, most Federal Reserve officials expected to cut interest rates two to three times in 2024, while the median forecast was to cut interest rates three times. However, after that, the US inflation data for the third time in a row showed that price pressure was still heavy, and investors began to doubt whether the Federal Reserve would be able to cut interest rates in 2024.