No surprise with a 25BP rate hike, the statement emphasized that the economy remains in an expansion phase, employment is stable, and inflation is high—these are all reasons for the rate hike.
Notably, this rate hike was unanimously decided by all 12 committee members. It must be said that the Fed announcements during the Walsh era are truly concise and to the point!
The dot plot is more hawkish than previous expectations, with no sign of the anticipated brief rate hike in 2026 or the expectation of rate cuts resuming in 2027. The dot plot shows the median rate in 2027 remains at 4.1%, meaning high rates will continue until 2028 before rates start to decline.
Looking solely at the dot plot, there will be another rate hike in 2026, and in 2027 the Fed will maintain a high-rate platform depending on economic conditions. Although there is no signal of a rate hike cycle starting, the expectation of rate cuts is basically not in sight in the short term!#本周FOMC揭晓，加息能否落地？
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