Officials acknowledge ‘modest further progress’ on prices
Fed boosts estimate of long-run neutral rate further
Federal Reserve officials penciled in just one interest-rate cut this year and forecast more cuts for 2025, reinforcing policymakers’ calls to keep borrowing costs high for longer to suppress inflation.
They now see four cuts in 2025, more than the three previously outlined.
The Federal Open Market Committee adjusted language in its post-meeting statement released Wednesday, noting there has been “modest further progress toward the committee’s 2% inflation objective” in recent months. Previously, the statement pointed to a “lack” of further progress.
The S&P is still up 0.96% and the 10 year is at 4.29% – no major reaction.