Fed Holds Rates Steady, Signals Slower Pace of Cuts

The Federal Reserve left interest rates unchanged today, as expected, but surprised markets by dialing back its forecast for rate cuts this year.
In a statement, the Fed acknowledged some progress on inflation but indicated it would take a more cautious approach to lowering rates. The central bank now expects just one rate cut in 2024, compared to the three cuts previously projected. This shift is reflected in their updated economic projections, with the Fed now aiming for a higher year-end interest rate than anticipated earlier.
Earlier positive data on inflation had fueled hopes for a quicker pace of rate cuts, leading to a surge in financial markets. However, the Fed’s revised outlook tempered some of that enthusiasm. While stock markets remain up, the rally in Bitcoin lost momentum.
Investors are now awaiting Fed Chair Jerome Powell’s press conference for further insights on the central bank’s decision and future plans for monetary policy.