Market Lab Report - Key takeaways from the Fed meeting

Published:

14 Jun 2023 16:11 ET

- Fed PAUSE, no change to current QT program.
- Powell said the rate hikes have not impacted inflation sufficiently so sees no rate cuts a couple of years out.
- Core PCE is the main concern.
- The Fed have revised their dot plot higher from 5.1% to 5.6%
- Fed projections for GDP growth and employment are now more optimistic.
- The market is now pricing a 25 bps hike at the next meeting in July with no cuts the remainder of the year.

Fed chair Powell indicated more than one more rate hike is possible taking a more hawkish stance with target fed funds rate at 5.6% suggesting two more hikes. But Powell said this does not mean they will hike as it remains data dependent.

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