The Fed makes multiple revisions to their 2025 economic data projections.
1. Cuts 2025 GDP growth projection from 2.1% to 1.7%
2. Raises unemployment forecast from 4.3% to 4.4%
3. Raises PCE inflation forecast from 2.5% to 2.7%
4. Raises Core PCE inflation forecast from 2.5% to 2.8%
The Fed sees higher inflation and a weaker economy.
Fed holds benchmark rate in 4.25%-4.50% target range as expected. Will start shrinking its balance sheet at a slower pace starting next month. Reducing the monthly redemption cap on Treasury securities from $25 to $5bn.
Look at the wide dispersion around the "longer run" dots. No real agreement on where they're heading.
Abrazos,
PD: ¿Qué tal llevas la Cuaresma? ¿Estás haciendo algo? Cuaresma=reencuentro con Dios.
Pistas:
