Fed Meeting Preview: Economists Predict Steady Rates In June, Fewer Cuts Ahead
Portfolio Pulse from Piero Cingari
The Federal Reserve is expected to maintain the federal funds rate at 5.25%-5.5% in June, with fewer rate cuts anticipated in the future. The market will focus on the Fed's updated economic projections. Recent economic data, including a strong May jobs report, has led to revised expectations for rate cuts. Analysts from Bank of America and Goldman Sachs have adjusted their forecasts, predicting fewer cuts in 2024 and 2025.
June 10, 2024 | 2:43 pm
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NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) may experience volatility as the market reacts to the Fed's decision to maintain rates and updated economic projections. Previous Fed meetings have led to negative reactions in SPY.
The Fed's decision to keep rates steady and the updated economic projections will likely cause market fluctuations. SPY previously closed 0.3% lower after the May FOMC meeting.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) may see price movements as Treasury yields fluctuate in response to the Fed's rate decision and economic projections. TLT previously ended 0.7% higher after the May FOMC meeting.
Treasury yields are sensitive to Fed rate decisions and economic projections. TLT previously saw a positive reaction, ending 0.7% higher after the May FOMC meeting.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70