US Fed, FOMC Summary(2024-03) : Hold rates
US Fed, FOMC Summary(2024-03) : Hold rates
Hold Fed rates.
Cuts 3 times this year.
Considering easing QT.
Q. When will the Fed cut rates?
A. It is not appropriate to cut rates until there is more confidence in the 2% inflation target, which should be sometime this year.
Q. Will QT (quantitative tightening) remain in place?
A. QT will remain at $95 billion per month. However, Dallas Fed President Laurie Logan and New York Fed President John Williams have suggested that the pace of QT tapering should be adjusted.
Q. What will happen to the U.S. economy?
A. Compared to the outlook last December, the economy should be in good shape. The inflation forecast is now 2.4% to 2.6%, growth is now 1.4% to 2.1%, and the unemployment rate is now 4.1% to 4.0%.
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| US Fed, FOMC Summary(2024-03) : Hold rates |
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| FOMC(March-2024), Economic Projections; median % |
THOTH Investing Opinion: Dovish FOMC statement, Fed considering a possible slowdown?
Many investors have been waiting for the US FOMC's decision.
Leading up to last week, US inflation data suggested that the Fed would keep rates unchanged, but would likely withdraw the prospect of three rate cuts this year. Inflation was high, unemployment was low, and growth had been sustained, which was far from the Fed's direction.
Nonetheless, the Fed locked in three cuts for the year.
This is likely because the Fed was considering the possibility of a soft landing later in the year, or because it believed that the 2% inflation target was still within reach with the current monetary policy.
This brings us back to the U.S. Federal Open Market Committee's (FOMC) statutory mandate.
The FOMC exists to fulfill the U.S. Congress's statutory mandate of stable employment, stable prices, and appropriate long-term interest rates, and to explain monetary policy decisions to the public as clearly as possible.
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| FOMC Dot plots |
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