The results of the FOMC meeting of the Federal Reserve at dawn today have come out—it's the same familiar script: interest rates remain unchanged at 4.25%-4.5%, but the dot plot has thrown a bucket of cold water on the market. The previously anticipated two rate cuts within the year have been reduced to just one, and hoping for a rate cut in 2025 to boost the market? Wake up, Powell has no intention of sweetening the deal for the market!
Core results: Hawks hold their ground, rate cut expectations slashed in half
Interest rate decision: The third consecutive maintenance of the 4.25%-4.5% range, meeting expectations but lacking any surprise.
Dot plot shock: The expectation for a rate cut in 2025 has shrunk from 50 basis points (two cuts) to 25 basis points (one cut), and the scenario of a 75 basis point cut in 2026 remains unchanged. Even more severe, among the 19 committee members, 11 believe there will be at most one cut this year, while 8 even claim "not even one cut".