#FED MEETING RESULTS #FOMC

Key Points from the Last FOMC Meeting:

1. Interest Rates Remain High

- The Fed has not cut interest rates, waiting for it to approach the 2% target.

- Signals suggest only 1 rate cut in 2024 (previously estimated at 3 cuts).

2. Economic Projections (Summary of Economic Projections/SEP):

- Inflation (#PCE ) is predicted to remain high at 2.6% (2024), dropping to 2.3% (2025).

- GDP growth for 2024 was revised up to 2.1% (previously 1.4%).

- Unemployment is expected to remain stable at 4%.

3. Fed Chair's View (69567447237):

- The Fed needs greater assurance that inflation is declining sustainably before cutting interest rates.

- The stock and bond markets reacted negatively as hopes for a rate cut receded.

What is the Impact?

- The US Dollar (USD) tends to strengthen as interest rates remain high.

- Stocks & Bonds: Volatility may occur, especially in the technology sector (NASDAQ).

- Emerging Markets (including Indonesia): Pressure on exchange rates if the USD remains strong.