#FOMCMeeting

The latest FOMC (Federal Open Market Committee) meeting concluded on June 12, 2024, with the Fed keeping interest rates unchanged at 5.25%-5.50%, maintaining a cautious stance amid mixed economic data.

Key Takeaways from the June 2024 FOMC Meeting:

1.Interest Rates Unchanged The Fed held rates steady for the 7th consecutive meeting, signaling a prolonged pause.

2.Inflation Concerns The Fed acknowledged slower progress toward the 2% inflation target, with recent CPI data showing stubborn price pressures.

3.Fewer Rate Cuts Expected The dot plot indicated only 1 rate cut in 2024 (down from 3 projected in March).

4.Economic Growth & Labor Market The Fed upgraded 2024 GDP growth to 2.1% (from 1.4% in March) but noted a cooling labor market.

5. Balance Sheet Reduction (QT) The Fed will slow its quantitative tightening (QT) pace, reducing Treasury roll-off from $60B to $25B/month starting in June.

Market Reaction:

Stocks dipped slightly as investors adjusted to fewer rate cuts.

Treasury yields rose, with the 10-year yield near 4.30%.

- The US Dollar (DXY) strengthened.

Next FOMC Meetings in 2024:

July 30-31

September 17-18

November 6-7

December 17-18