All eyes are on Fed’s dot plot as traders look for clarity on rate cut path
Traders will have their focus on the Federal Reserve’s dot plot of interest rate expectations as the central bank concludes its policy meeting.
The dot plot, a quarterly report of where policymakers see the fed funds rate heading, is closely watched by traders.
Earlier, the Fed had indicated three rate cuts for 2024, but given a recent blast of strong job reports and other upbeat economic data, many are expecting the forecast to show two reductions.
The central bank’s updates – and its latest rate decision – are coming out just hours after May’s consumer price index reading. On a monthly basis, the headline CPI reading held steady from April, but it rose 3.3% from a year earlier, according to Bureau of Labor Statistics.
–Darla Mercado, Jeff Cox