Fed Officials' Median View Of Fed Funds Rate In Longer Run 2.9% (Prev 2.8%); Fed Projections Imply 50 Bps Of Additional Rate Cuts In 2024 From Current Level, 100 Bps More In 2025, Another 50 Bps In 2026; Projections Show 9 Of 19 Officials See Policy Rate Above The Median Forecast For 2024, 9 See It At The Median, One Sees It Below That; See 4.4% Unemployment Rate At End Of 2024 And 2025 Versus 4.2% Now
Portfolio Pulse from Benzinga Newsdesk
The Federal Reserve's projections indicate a median long-term Fed funds rate of 2.9%, with expected rate cuts totaling 200 basis points by 2026. Unemployment is projected to rise to 4.4% by the end of 2024 and 2025.
September 18, 2024 | 6:07 pm
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The Federal Reserve's projections of rate cuts totaling 200 basis points by 2026 and a rise in unemployment to 4.4% could impact the SPY ETF, which tracks the S&P 500. These projections suggest potential economic adjustments that could influence market sentiment.
The SPY ETF, which tracks the S&P 500, could be influenced by the Fed's projections of rate cuts and rising unemployment. While rate cuts can stimulate economic activity, the anticipated rise in unemployment may offset positive impacts, leading to a neutral short-term outlook.
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