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To surprise someone, Fed kept the rates stable at the June FOMC meeting.
As in this modern era of monetary policy, the actual rate decision was well telegraph and markets were not transferred.
In terms of what Did Transfer the markets … FOMC statement saw minor changes in words, but generally, the market participants were very low to shine.
In particular, the update summary of economic estimates compared to the final update in March was sufficient.
Given how much has changed since March (an emerging war with liberation day and an emerging war, to name some things), it is no surprise that FOMC members are not surprised to see a significant change in ways to develop in the economy.
Based on the table below, we can think that:
- The FOMC slows down more development than the members of the committee in March.
- The FOMC hopes that the unemployment rate will be slight, but they are still not worried about the labor market.
- The committee increased its inflation forecast from 2.7% to 3% for 2025, giving the risk of tariffs what they expect.
Interestingly, one thing was done by FOMC No The change is how much rate they cut this year.
The number was at two at the end of two years. However, below the surface, we really saw more FOMC members moving towards no cuts for this year – just enough to move the market on the average projection:
Overall, the theme of the June meeting was actually committed to reducing as much as possible.
With a review of the five -year monetary policy structure, the term of a fed chair in 2026 is ending, uncertainty around the tariff, a potential oil blow from the Middle East and the US President sought at least 200 basis points cut rates, appearing that Powell’s main goal is to reach the end of his tenure in just one piece.
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