The Fed statement stated that economic activity has rebounded after its decline in the first quarter, but inflation remains high in conjunction with high energy prices and price pressures, and the committee seeks to achieve maximum employment and inflation in the long term.
All members voted for an increase of 75 basis points, with the exception of member Esther George, who voted for a raise of 50 basis points.
The bank lowered its growth forecast to 1.7% this year, compared to 2.8% in March estimates, and 1.7% next year as well, from 2.2%. In contrast, the bank raised its forecast for PCE inflation to 5.2% this year, compared to 4.3% in March estimates.
Interest rates are expected to rise to 3.4% this year, compared to 1.9% in March estimates, and 3.8% next year from 2.8%
. The US dollar is rising, and the general dollar index is trading at 105.58 levels, as we mentioned in the morning report, where the interaction is considered limited, given that the current prices are calculated in a large percentage, raising the interest rate by 75 basis points.
After less than 15 minutes, the markets are awaiting the press indicator of Bank President Jerome Powell to answer journalists’ questions.
02/11/2024
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