FED HOLDS RATES — BUT DOT PLOT SHIFTS HAWKISH
The Fed just left interest rates unchanged, but their projections tell a more cautious story:
- Longer-run rate forecast stays at 3.0%
- End of 2025: still at 3.9%
- End of 2026: revised up to 3.6% (prev. 3.4%)
- End of 2027: revised up to 3.4% (prev. 3.1%)
Translation: The Fed sees fewer cuts ahead and higher rates sticking around longer.
This is a hawkish shift, signaling that inflation remains sticky enough to delay the return to low rates. Markets will have to recalibrate.