Fed Officials' Median View Of Fed Funds Rate At End-2024 4.4% (Prev 5.1%); Median View Of Fed Funds Rate At End-2025 3.4% (Prev 4.1%); Median View Of Fed Funds Rate At End-2026 2.9% (Prev +3.1%); Median View Of Fed Funds Rate At End-2027 2.9%
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve officials have revised their median projections for the federal funds rate, indicating a decrease over the next few years. The end-2024 rate is now projected at 4.4%, down from 5.1%. For 2025, the rate is expected to be 3.4%, previously 4.1%. By 2026, the rate is projected at 2.9%, slightly down from 3.1%, and it remains at 2.9% for 2027.
September 18, 2024 | 6:06 pm
News sentiment analysis
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POSITIVE IMPACT
The SPDR S&P 500 ETF (SPY) may experience positive sentiment as the Federal Reserve officials have lowered their median projections for the federal funds rate through 2027. This suggests a potential easing in monetary policy, which could be favorable for equities.
Lower projected federal funds rates suggest a more accommodative monetary policy stance, which is generally supportive of equity markets. As SPY tracks the S&P 500, it could benefit from this positive sentiment.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80