Your Capital Markets Snapshot: The Federal Reserve’s “Dot-Plot” Back in the News
The Federal Reserve’s “dot-plot” was back in the news this week following the March FOMC meeting. While no rate cuts were announced at this meeting, the new pattern of expected Fed moves implies three cuts at some point in 2024. The dot plot also shows a multi-year process of bringing the Fed Funds rate down to 3.1% by 2026. In comments following the meeting, Fed Chairman Jerome Powell noted that inflation continues to gradually decline on a “sometimes bumpy road”. The markets reacted positively to this news with higher equity indices and lower U.S. Treasury yields by the end of the week.