Fed Sees Hotter Inflation for Longer, Higher Unemployment, Slower Growth, “Dot Plot” Shifts More Hawkish but Still Sees Two Cuts in 2025. QT Continues.

by Wolf Richter
Wolf Street

“Uncertainties” rule. Wait-and-see amid inflation fears and slowing growth.

The FOMC voted unanimously today to keep the Fed’s five policy rates unchanged, for the fourth meeting in a row, after cutting by 100 basis points in 2024.

• Target range for the federal funds rate: 4.25-4.50%.
• Interest it pays the banks on reserves: 4.40%.
• Interest it pays on overnight Reverse Repos (ON RRPs): 4.25%
• Interest it charges on overnight Repos at its Standing Repo Facility: 4.50%.
• Interest it charges banks to borrow at the “Discount Window” at 4.50%.

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