Fed Holds Rates, Signals One More Hike This Year

The Fed maintains interest rates between 5% and 4.45%, citing solid growth and elevated inflation. They leave room for another rate hike this year and remove two rate cuts for the next two years. The Fed's dot plot indicates a potential rate increase, with a median effective rate of 5.1% for 2024. Economic projections show stronger growth, lower unemployment, and reduced core inflation. The market reacts with slight declines in SP500 and NASDAQ, while bond yields rise and the US dollar strengthens. Analysts discuss the Fed's revised projections and potential economic outcomes.

What is the Fed's projection for PCE headline inflation this year?

What changes did the Fed make to their growth forecast for next year?