The media and many money shufflers are determined to press the Fed to cut rates as fast as possible.
Idiot dems trying to save FJB. The fed should be raising rates. Cutting them in the fall will cause way more inflation to sabotage Trump’s new term.
That’s right, keep cutting. Inflation will be 18% before you know it. Probably is already, if only someone would measure it.
Rates are still too low. Real inflation is much higher than 3.4%. Deficits are skyrocketing. Fed needs to do a Paul Volcker shock treatment to the system. They must stop the orgy and take away the punch bowl but they won’t.
3.4% is still high. I would do another increase in the interest rates to get it under 2.0%.
The Federal Reserve left the fed funds target range steady at 5.25%-5.50% for a 7th consecutive meeting in June 2024, in line with forecasts. Policymakers do not expect it will be appropriate to reduce rates until they gained greater confidence that inflation is moving sustainably toward 2%. Meanwhile, the dot plot showed policymakers see only one rate cut this year and four reductions in 2025. Back in March, the Fed was seeing three cuts in 2024 and three in 2025. The Fed made no revisions to GDP growth projections and still sees the economy expanding 2.1% in 2024, 2% in 2025 and 2026.
Meanwhile, PCE inflation was revised higher for 2024 (2.6% vs 2.4% in the March projection) and next year (2.3% vs 2.2%) but was kept at 2% for 2026. Core PCE inflation was also revised up to 2.8% in 2024 (vs 2.6%) and 2025 (2.3% vs 2.2%) but was kept at 2% for 2026.
The unemployment rate is projected at 4% for 2024, the same as expected in March, but is seen slightly higher at 4.2% in 2025 (vs 4.1%).
My prediction is a cut by August or September and it could be a 1/4 point or even a 1/8th point cut. Anything to juice the market.