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Federal Reserve:Meetings/2023 June 14: Difference between revisions
Federal Reserve:Meetings/2023 June 14 (view source)
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== Meeting Results == | |||
* Fed interest rate unchanged in the target range of 5%-5.25% as was expected by the market. | |||
<blockquote>“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” the post-meeting statement said</blockquote> | |||
* However, majority of the members see two more 25 basis points rate hike before the end of the year. | |||
* FOMC members also raised their funds rate forecasts for 2024 to 4.6% from 4.3% initially. | |||
* Additionally, they raised their funds rate forecasts for 2025 to 3.4% from 3.1% initially. | |||
* The members now anticipates a 1% growth in GDP in 2023 from 0.4% estimate in March. | |||
* They expects unemployment rate to be 4.1% by the end of the year versus 4.5% forecast in March. | |||
* The members raised their forecasts for core personal consumption expenditure to 3.9% from 3.6% and lowered their forecasts for the headline number to 3.2% from 3.3%. | |||
* The outlook for subsequent years in GDP, unemployment and inflation were little changed. | |||
=== Magaly's Assessment === | |||
=== Projections === | |||
{| class="wikitable" | |||
|'''Variable''' | |||
|'''2023''' | |||
|'''2024''' | |||
|'''2025''' | |||
|'''Longer Run'''<ref>https://www.federalreserve.gov/monetarypolicy/files/fomcprojtabl20230614.pdf</ref> | |||
|- | |||
|Change in real GDP | |||
|1 | |||
|1.1 | |||
|1.8 | |||
|1.8 | |||
|- | |||
|Unemployment rate | |||
|4.1 | |||
|4.5 | |||
|4.5 | |||
|4 | |||
|- | |||
|PCE inflation | |||
|3.2 | |||
|2.5 | |||
|2.1 | |||
|2 | |||
|- | |||
|Core PCE inflation | |||
|3.9 | |||
|2.6 | |||
|2.2 | |||
| | |||
|- | |||
|Federal funds rate | |||
|5.6 | |||
|4.6 | |||
|3.4 | |||
|2.5 | |||
|} | |||
=== Notes: === | |||
== Market Expectations == | == Market Expectations == | ||