When it was almost universally expected, the US Federal Reserve left benchmark interest rates stable with 4.25% -4.50% Wednesday at the June meeting.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity is still expanding at a solid pace,” the press release states. “Unemployment remains low and labor market conditions remain solid. Inflation remains somewhat elevated.”
Fed’s quarterly financial projections-AS includes “DOT-Plot”, which indicates where the central bank expects the Fed Foundation’s rate over time-wise that decision makers see the rate of 3.9% at the end of the year 2025, translating to 50 base points this year, the same as they expected in March. However, FED members see the rates fall to 3.6% next year and 3.4% in 2027, indicating fewer rate cuts than their previous projections.
Politicians also cut their economic growth projections, with the GDP increase this year, now seen at 1.4% against 1.7% at the forecast for March. They also projected higher inflation for this year with personal consumption expenses (PCE) and core PCE inflation landing of 3% and 3.1% against 2.7% and 2.8% in March. FED members also see that unemployment rises to 4.5% this year and during 2026, up from 4.4% and 4.3% March projections.
Bitcoin (BTC), which hovered about $ 104,000 earlier during the session, was slightly changed at $ 104,200 minutes after the bold decision. The S&P 500 and the Nasdaq indexes were up.
Dealers will now draw attention to Fed -Chairman Jerome Powell’s remarks at. 14:30 Eastern Time (18:30 UTC) for additional clues from the decision makers’ views on monetary policy.
