The signal released by the Federal Reserve: it suggests a rate cut once this year, but maintains an open attitude towards cutting twice.

The soft US CPI data for May has sparked a frenzy in the overnight US stock market, and the S&P and Nasdaq continue to hit new highs. Although the Fed tends to view May CPI as a single data point, and the June dot plot is hawkish, the policy statement still acknowledges the progress of inflation slowing down. Many market participants believe that the Fed maintains an open attitude towards two 25 bp rate cuts this year. The June interest rate decision shows that the Fed has kept the benchmark interest rate within the range of 5.25% to 5.5% for the seventh consecutive time, maintaining the new high of more than 20 years. The dot plot shows that nearly 80% of officials expect at least one rate cut this year, and the number of officials who do not expect a rate cut this year is higher than that in March.

wallstreetcn24minutes ago

The Federal Reserve is adrift! Hawkish decisions have sparked a major debate on Wall Street, significantly reducing expectations of an interest rate cut.

This article will explore experts' interpretation of the Federal Reserve's policy decisions and its potential impact on the stock market.

Zhitong Finance22:11 ET

Hawkish decisions versus dovish sentiment! The Federal Reserve is expected to cut interest rates once this year, but remains open to two cuts.

According to the Zhī Tōng Cái Jīng APP, Federal Reserve officials have lowered their expectations of interest rate cuts this year. However, Chairman Powell still remains open to further interest rate cuts, and he emphasized that the new forecast represents a conservative approach. At the two-day policy meeting held in Washington on Wednesday, policymakers announced their latest economic forecasts. According to their median estimate, they expect to cut borrowing costs only once in 2024, rather than the previously estimated three times. They also raised their inflation forecast, despite the optimistic consumer price data released earlier on the same day. Nationwide Mutual.

Zhitong Finance21:09 ET

Interest rate cut expected in September! Market still sings against the Federal Reserve.

Powell maintains a hawkish tone, but traders continue to increase bets on rate cuts due to the impact of falling inflation data, making the possibility of the first rate cut in September once again a reality.

wallstreetcn21:01 ET

Despite the cooling of CPI, expectations of interest rate cuts remain high! The Federal Reserve continues to hold steady and is expected to cut interest rates only once this year.

The dot plot shows that no one expects a rate cut three times this year, while last time more than half of the officials expected at least three rate cuts. Nearly 80% of officials expect at least one rate cut this time, and the number of officials who do not expect rate cuts this year has doubled to four.

wallstreetcn21:01 ET

"New Bond King" Gundlach: The Fed may not cut interest rates in 2024.

Jeffrey Gundlach, CEO of investment firm DoubleLine Capital, known as the "new bond king," said on Wednesday that the Federal Reserve may not lower interest rates by the end of 2024.

Zhitong Finance20:09 ET