once Expected almost 24/7The US Federal Reserve’s benchmark interest rate was stable at 4.25%-4.50% at its June meeting.
“Although volatility in net exports has affected the data, recent indicators show that economic activity continues to expand,” the press release said. “Unemployment remains low and labor market conditions remain stable. Inflation remains somewhat higher.”
The Fed’s quarterly economic forecast (which includes a “point” chart that shows when and where central banks expect, and where the Fed expects interest rates over time – policymakers, with the expected 2025 forecast, lowering this year’s basis point to 50 basis points, the same as they expected in March. However, Fed members believe interest rates will fall to 3.6% next year and down 3.4% in 2027, indicating that the reduction is less than its previous forecast.
Policymakers have also cut forecasts for economic growth, with GDP growth now at 1.4% this year, compared with 1.7% for March. They also expect higher inflation this year, with personal consumption expenditure (PCE) and core PCE inflation at 3% and 3.1%, compared with 2.7% and 2.8% in March. Federal Reserve members also believe that the unemployment rate has risen to 4.5% this year, with March forecasts of 4.4% and 4.3% in 2026.
Bitcoin (BTC), hovering around $104,000 during the meeting, with little change in 104,200 minutes after the Fed’s decision. The S&P 500 and Nasdaq index have risen.
Traders are now shifting their focus to Fed Jerome Powell’s remarks at 2:30 p.m. ET (UTC 18:30) to further address the strategy’s perception of monetary policy.
