Fed Sticks to Wait-and-See, Sees Only 2 Cuts in 2025, “Dot Plot” Shifts Hawkish Amid Rising Inflation & “Uncertainties.” Slows Treasury QT, Maintains MBS QT

by Wolf Richter
Wolf Street

“Dot plot”: 8 of 19 participants see either no cut or just 1 cut in 2025.

The FOMC voted today to keep the Fed’s five policy rates unchanged, for the second meeting in a row, after cutting by 100 basis points in 2024. All participants agreed with the rate decision. But Christopher Waller dissented because he preferred to continue the current pace of QT.

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