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Real-time News
The Federal Reserve FOMC will announce its interest rate decision and a summary of economic expectations in ten minutes.Statement and economic expectations: 1. Dot plot: The number of interest rate cuts this year may be reduced to one (two in March). Under this premise, if the number of interest rate cuts in 2026 remains unchanged at two, the interest rate expectations at the end of 2025-26 will all move up by 25 basis points; if the number of interest rate cuts in 2026 increases to three, the interest rate expectations at the end of 2026 will remain unchanged. 2. Economic expectations: Under the dual impact of tariffs and Middle East conflicts, core PCE expectations may be slightly raised (2.8% in March), which is the key to whether and how much interest rates will be cut. GDP expectations may be lowered and unemployment rates may be raised. 3. Statement comparison: The description of economic activity remains "robust", and the "uncertainty of the economic outlook further increases" may be changed to "uncertainty remains high". 4. Statement of balance sheet reduction: It is highly likely to remain unchanged (reducing US$5 billion in US Treasury bonds and US$35 billion in MBS each month). Powells press conference: 1. Powell may continue to hold a hawkish and cautious stance, emphasizing uncertainty. 2. Asked about tariffs: Do you still think it is a one-time shock? Would you cut interest rates without tariffs? Are you concerned about the current situation or the future? 3. Responding to Trumps pressure to cut interest rates and insisting on the independence of the Federal Reserve. 4. Asked about the Iran-Israel conflict: Does it have an impact on short-term inflation expectations? How long do you think it will last? 5. Asked about relaxing the banks supplementary leverage ratio (SLR)? The Federal Reserve will meet next Thursday to discuss the proposed revisions. 6. Trump may make trouble again after the meeting. Before the meeting, Trump expected the Federal Reserve not to cut interest rates and raised the interest rate cut requirement to 250 basis points. June 19th, before the Federal Reserve releases its second forward-looking dot plot for 2025, its worth reviewing officials latest forecasts from March. At that meeting, officials expected GDP growth to slow to 1.7% this year, unemployment to rise to 4.4%, and the Feds favorite PCE inflation measure to show prices rising 2.7% in 2025 as tariffs slow economic growth and push up costs. Perhaps most importantly, the median official expectation is that the Fed will cut interest rates twice in the remainder of 2025, followed by two more cuts in 2026. When the new dot plot is released at 2 oclock tonight, the rate cut forecast will be one of the first data to attract investors attention.Michel, head of global fixed income at JPMorgan: Federal Reserve Chairman Powell will defend the "integrity" of decision-making.Michelle, head of global fixed income at JPMorgan Chase: I expect the Federal Reserve to raise inflation expectations.
