Introduction:
Fed meeting news: The Federal Reserve has concluded its two-day meeting on August 1, 2024, in which the Federal Reserve said it could start cutting interest rates from September. This is happening as US manufacturers voted to keep borrowing costs at a 23-year high for the 8th consecutive meeting. The Federal Reserve revised its economic outlook. The central bank cited concerns of slowing economic growth and rising inflation as the reasons for its decision.
Interest rates:
Fed meeting news: The Federal Reserve has maintained the federal funds target range at 5.00%-5.25%, as most analysts had expected. This is the second consecutive meeting without a rate hike, after a series of hikes aimed at curbing inflation. Jay Powell says that the next meeting in September will also consider cutting our policy rates. Powell has said that there have been real discussions about cutting rates this week in the Federal Reserve Open Market Committee.
Economic Outlook:
The Fed revised its economic projections, forecasting slower GDP growth and higher inflation in 2024. The average GDP growth forecast has been lowered from 2.0% to 1.5%, while the inflation forecast has been raised from 3.0% to 3.5%.
"Fed meeting news: The committee is closely monitoring the implications of slowing economic growth and rising inflation pressures," Federal Reserve Chairman Jerome Powell said in a report. "We will continue to adjust our monetary policy stance as needed to achieve our dual mandates of maximum employment and price stability." Fomc said inflation could be brought down to 2 percent. It also said that more cuts would require more confidence from officials.
Market reaction:
The Fed's decision and revised outlook caused a lot of market reaction, with volatility in stocks and bonds. The US dollar has strengthened slightly against all major currencies.
The results of the Federal Reserve meeting and revised economic projections reflect the complex balancing act facing the central bank. As the economy deals with slowing growth and rising inflation, the Fed must carefully calibrate its monetary policy to achieve its dual mandate.
Fed meeting news Powell also said that the inflation data coming in the second quarter has increased our confidence and good data strengthens confidence.
This is the clearest indication yet that the central bank may change its policy after two years of intensifying its fight against inflation.
Bob Mitchell, who is the chief officer of JP Morgan Agent Management, said that he is giving every possible indication that nothing dramatic is expected from now till September.
They are going to start cutting rates by a quarter point in that meeting.
Fed meeting news The Fed acknowledged the concerns arising from the labor market, the fomc said on Wednesday that it is aware of the risks of its dual mandate.
Federal Reserve Interest Rates
Federal Reserve News: The Federal Reserve kept its interest rates steady during its recent meeting. The federal funds rate remained at 5.25% to 5.5%, the highest in 23 years. The Federal Reserve has indicated that it may cut these interest rates soon.
- Change in interest rates: The Federal Reserve has maintained the federal funds rate between 5.25% to 5.5%.
- The current interest rate is the highest in 23 years.
- Future cuts: Federal Reserve Chairman Jerome Powell said in a statement that the central bank may begin cutting borrowing costs as early as September.
- Inflation: The Federal Reserve News described inflation as "somewhat elevated," which is more accommodative than it described it as "elevated" in June.
- Labor Market: The labor market is expected to weaken, job growth is slowing and the unemployment rate is seen rising,
- Future Meetings: The next Federal Reserve meetings are scheduled for September 17-18, and then November 6-7 and December 17-18.
Fed Meeting dates
The next Federal Reserve meetings are as follows
The Federal Reserve meeting dates for 2024 are:
- January 30-31: The first Federal Reserve meeting of 2024.
- March 19-20: The second Federal Reserve meeting of 2024.
- April 30 to May 1: The third Federal Reserve meeting of 2024.
- 11-12 June: Fourth Federal Reserve meeting of 2024.
- 30-31 July: Fifth Federal Reserve meeting of 2024.
- 17-18 September: Sixth Federal Reserve meeting of 2024.
- 6-7 November: Seventh Federal Reserve meeting of 2024.
- 17-18 December: Eighth and final Federal Reserve meeting of 2024.
Now the next meeting is going to be held in September in which the issue of interest rates can be raised.
The dates about the Federal Reserve and its scheduled meetings are given above.
Fed meeting Outcome today
IS Fed Meeting News This meeting has seen a smaller than expected decline, with the Dow Jones falling 0.1% in June against the Dow Jones estimate of a 0.1% increase, and an annual inflation rate of 3% against the estimated 3.1% may influence the Fed's decision making.
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According to CME's Fed Watch tool, there may be a low probability that the Fed cuts rates by 25 basis points at the conclusion of Wednesday's meeting, but a rate cut is expected at the Fed's September meeting.
Inflation objective: The Federal Reserve reported that there was no further progress toward the committee's two percent inflation objective.
Balance sheet reduction: The Federal Reserve is looking to slow the pace of balance-sheet runoff.