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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%. US Fed, FOMC Summary(2024-03) : Hold rates 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. Le

Fed rate cuts to be hard?… Inflation target 2% "Fed needs to be confident of reaching its 2% Inflation target." For the U.S. Federal Reserve to cut interest rates, it first needs to have strong confidence in reaching and maintaining its 2% inflation target. Over the past year, inflation has been falling steadily, but not enough to reach the target, and the economy is showing signs of improvement. The question for the Fed is. If it cuts rates too soon, it will fail to reach its 2% inflation target and potentially cause high inflation to become entrenched. If they cut rates too late, high-interest rates could push the economy into recession. Fed Chairman Jerome Powell's comments echo that concern. “Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2%.”, “At the same time, reducing policy restraint too late or too little could unduly weaken econom

U.S. PCE inflation data shows inflation stabilizing... a green light for rate cuts later this year January 2024, core PCE index 0.4% ... up 2.8% yoy The US Federal Reserve's benchmark interest rate decision is driven by inflation (Personal Consumption Expenditures (PCE)) and employment data (with a focus on the unemployment rate), with PCE inflation and the unemployment rate driving the larger picture. The U.S. Fed focuses on the central bank's mandate of price stability and prioritizes price stability over economic growth in determining monetary policy. This is a common mandate for all major central banks around the world, most of which have a target inflation rate of 2.0%. Bureau of Economic Analysis (YoY)PCE, PCE(*excluding food and energy) prices fall for 5th consecutive month ... inflation stabilizes (MoM)PCE, PCE(*excluding food and energy prices) inflation up slightly Year-over-year, inflation has been relatively stable and is approaching the US Federal Reserve's 2%