The Fed leaves rates unchanged. Only one cut in 2024

US rates Goolsbee Chicago Fed slows down on cuts

(Finance) – The Federal Reserve leaves interest rates unchanged and makes it known that it will only cut them once, this year, to the extent of a quarter of a point. The cost of money remains between 5.25% and 5.50%. This is what emerges from dot plotthe tables attached to the monetary policy decision.

The US central bank has revised inflation estimates upwards: consumer prices will rise to 2.6% above the 2.4% indicated in March. Next year is seen at 2.3% (2.2% the previous estimate). The expectation of 2% inflation is confirmed for 2026.

The unemployment rate will stand at 4% at the end of this year, while the US economy will grow 2.1% this year, as expected, and 2% in both 2025 and 2026.

The Fed underlines in the statement, released at the end of the two-day meeting, that inflation remains “high” and the progress to bring it to the 2% objective is “modest”.

The markets are now waiting for the signals that could come from the usual and subsequent press conference Fed Chairman Jerome Powell.

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