Federal Reserve Chair Jerome Powell stated that projections regarding the path of interest rates, known as the “dot plot,” should be approached cautiously due to the high level of uncertainty in the macroeconomic environment.
Powell explained that members are attempting to forecast in an atmosphere of significant ambiguity, presenting what they see as the most likely scenario. He noted that no one is overly confident in these paths, and everyone agrees they will be data-dependent.
These projections reflect the views of 19 members of the Federal Open Market Committee and currently suggest the possibility of two interest rate cuts this year.
The Federal Open Market Committee decided on Wednesday to keep interest rates unchanged at a range of 4.25% to 4.5% for the fourth consecutive time, which is a full percentage point lower than the level in September when officials began cutting rates, aligning with market expectations.
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