#FOMCMeeting

The Federal Open Market Committee (FOMC) meeting is currently underway, starting today, June 17, and concluding tomorrow, June 18. Here's what you need to know ¹ ²:

- *Interest Rate Decision*: The FOMC is not expected to cut interest rates at this meeting. The central bank is likely to maintain its current stance, with the federal funds rate target range remaining at 4.25% to 4.50%.

- *Summary of Economic Projections (SEP)*: The Fed will release its SEP, also known as the "dot plot," which will provide insights into the committee's expectations for the federal funds rate at the end of this year.

- *Market Expectations*: According to CME Group's FedWatch, there's a 99.9% probability that the Fed will hold the interest rates steady. Traders have also pared bets on a September rate cut.

- *Key Focus Areas*: Investors will be watching for:

- *FOMC Statement*: For hints on future monetary policy decisions.

- *Jerome Powell's Press Conference*: To gauge the Fed's stance on inflation, economic growth, and potential rate cuts.

- *Economic Projections*: To understand the Fed's outlook on the economy and inflation.

- *Market Impact*: The meeting's outcome could influence the stock and bond markets, with investors seeking clarity on the Fed's policy direction.

Some notable comments from Fed officials ahead of the meeting include ²:

- *Jeffrey Schmid*, Kansas City Fed President, emphasized the importance of being cautious on inflation, stating that the Fed shouldn't let its guard down despite anchored long-term inflation expectations.

- *Adriana Kugler*, Fed Governor, noted that monetary policy is "modestly restrictive" and supports maintaining interest rates at current levels if upside risks to inflation remain.