Interest rate decision summary

1. The Federal Reserve voted unanimously to pause, keeping interest rates as they are. However, Powell forecasted that further rate hikes are likely needed this year.
2. The Fed is still committed to 2% inflation.
3. The full effects of hikes haven't yet filtered through to the economy.
4. The labor market remains too strong despite some evidence of progress.
5. The Fed's updated dot plot was released with Fed members forecasting higher peak rates than their previous in March.
The median prediction for peak rates is now 5.6%, and almost all members agree that further hikes will be needed.
6. Core PCE inflation (the Fed's preferred measure of inflation) isn't showing much progress.
7. The Fed don't know how much conditions are going to tighten (in relation to recent banking sector troubles) and will remain data-dependent.
8. A slowing of growth in the economy is needed to bring inflation down.
9. Powell feels there is still a chance a soft landing can be achieved.
10. Rate cuts are not expected this year and could be as long as a few years out.