According to the FED's forecast, the inflation rate is expected to continue to decrease to 2% within the next 3 years.
Interest rates will gradually decrease, with a forecast of two cuts this year but fewer cuts expected in 2026-2027.
Based on current data, policies have met the FED's goal of stabilizing the market, which has been the FED's set objective.
In April, tariffs created much uncertainty and instability in the market, but these effects peaked in April and are gradually declining.
Market confidence has slightly increased, although it remains generally quite subdued. All labor market indicators are relatively strong, including the unemployment rate, base wages, etc. The FED will continue to monitor the market in the coming period.
Currently, forecasts about inflation have only reached the level of predictions. Each person may forecast differently based on the available data. Therefore, the FED wants to take action only when there is clear data.
The FED continues to affirm that we are still in a good position to respond to any scenario that may occur.