BREAKING NEWS: Federal Open Market Committee (FOMC) officials have just released their projections for the coming years. Here's what you need to know:
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Expectations for rate cuts in 2025 and 2026 have been revised downwards, signaling a cautious approach until there's stronger confidence in inflation dynamics.
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Projections for Real GDP growth have been raised to +2.1%, indicating optimism about economic expansion.
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The unemployment rate forecast has been reduced to 4.0%, suggesting anticipated improvements in the job market.
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Forecasts for Personal Consumption Expenditures (PCE) inflation remain steady at 2.4%, while expectations for core PCE inflation have been bumped up to 2.6%.
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The Federal Funds Rate (FFR) is anticipated to remain at 4.6%, with a median forecast from the FOMC suggesting potential rate cuts totaling 75 basis points in 2024.
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Looking ahead to 2025, the median rate forecast has been revised upwards to 3.9% from 3.6%, indicating a shift towards expectations of higher Fed Funds rates, projected at 3.75%.
