Fed Officials Project 2.1% GDP Growth And 4% Unemployment For 2024; Raise Inflation Forecast To 2.6%; See Fed Funds Rate At Median Of 5.1% End Of 2024, 4.1% End Of 2025, 3.1% End Of 2026; Long-Run Median At 2.8%; Modest Progress Toward 2% Inflation Goal; Discount Rate Unchanged At 5.50%; FOMC Vote 12-0 For Rate Action
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve projects 2.1% GDP growth and 4% unemployment for 2024, raises the inflation forecast to 2.6%, and sees the Fed Funds Rate at a median of 5.1% by the end of 2024. The discount rate remains unchanged at 5.50%.
June 12, 2024 | 6:02 pm
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NEUTRAL IMPACT
The Federal Reserve's projections of 2.1% GDP growth, 4% unemployment, and a raised inflation forecast to 2.6% for 2024, along with a median Fed Funds Rate of 5.1% by the end of 2024, could lead to market volatility. The unchanged discount rate at 5.50% suggests a cautious approach.
The Federal Reserve's economic projections and rate forecasts are critical for market sentiment. The raised inflation forecast and higher Fed Funds Rate could lead to market volatility, impacting SPY. However, the unchanged discount rate indicates a cautious stance, balancing the potential impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 80