Fed’s dot plot of rate expectations will be key Wednesday
Central bank policymakers are widely expected to stand pat on interest rates at the conclusion of their March policy meeting, but the dot plot will be the main event for traders.
The policy-setting Federal Open Market Committee will issue its dot plot, a breakdown of individual members’ expectations for interest rates moving forward.
Investors kicked off 2024 with a sanguine outlook on interest rate cuts, anticipating that the Fed would lower rates six or seven times in increments of quarter percentage points. But those expectations have come down to reality, as investors now anticipate rates first falling in June and they forecast only three cuts.
The shift in the Street’s forecast comes as economic data shows that inflation is proving to be harder to quash than many had hoped.
Read more from CNBC’s Jeff Cox on what to expect from the Fed’s meeting.
–Darla Mercado
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