#FOMCMeeting

FOMC Holds Rates Steady, Signals Potential Cuts Later in 2024

Date: June 12, 2024]

The Federal Open Market Committee (FOMC)*concluded its June meeting today, keeping the federal funds rate unchanged at 5.25%-5.50%, marking the seventh consecutive pause since July 2023. The decision aligns with market expectations as the Fed continues balancing stubborn inflation against signs of a cooling economy.

What’s Next?

The Fed’s next meeting on July 30-31 will be scrutinized for clues on whether September could see the first rate cut. For now, the message is clear: Higher for longer, but easing is coming—if the data cooperates.

Today’s decision reflects a cautious Fed, unwilling to declare victory over inflation but laying groundwork for a potential soft landing. With elections looming, political pressure may grow, but Powell reiterated the Fed’s data-dependent stance. Investors should watch May CPI (released tomorrow) for fresh signals.