#FOMCMeeting
Summarizing key points from a recent Federal Open Market Committee (FOMC) meeting:
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** it's latest FOMC meeting, maintaining the benchmark interest rate at **5.25%-5.50%** for the seventh consecutive meeting. While inflation remains elevated, Chair Jerome Powell signaled growing confidence in the disinflationary trend, hinting at potential policy adjustments later this year.
Key Takeaways:
**"Higher for Longer" Persists:** Rates remain at a 23- year high as the Fed seeks "greater confidence" inflation is sustainably moving toward its 2% target.
**Slower Balance Sheet Runoff (QT):** Starting in July, the Fed will reduce the pace of its Treasury securities roll-off from $60 billion to $25 billion monthly—a move to ease liquidity pressure without halting contraction.
**Dovish Shift in Projections:** Updated "dot plots" revealed **one projected rate cut in 2024** (down from three in March), but projections now show **four cuts in 2025** (up from three), reflecting cautious optimism.
**Inflation Progress Noted:** Powell acknowledged "modest further progress" on inflation but emphasized the need for sustained improvement, particularly in services.
**Labor Market Resilience:** The Fed sees the jobs market cooling gradually but remains strong overall, reducing urgency for immediate cuts.
