6/16/2023: Fed Kept Rates at 5-5.25%
Potentially two more 0.25% raises to come later this year.
FOMC announced on Wednesday that they will keep the rates unchanged at 5-5.25% after their June meeting this past Wednesday but signaled there might be a couple more 0.25% raises later this year. The language in the statement changed from
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy
in the last meeting to
The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy.
For the June meeting, they also published the dot plot and the rate expectation for 2023 increases a bit from 4.9-5.9% in the March meeting to 5.1-6.1% in the current meeting. The 2024 rate expectation was also projected higher compared to the March meeting. It sounds like this current 5ish% rate will continue for a while. People who are hoping for a rate cut this year will probably be disappointed.