Overview

• The Federal Reserve concludes its policy meeting with a cautious stance on interest rate reductions, influenced by higher than expected inflation rates.
• Recent economic data has led to a reassessment of the likelihood of rate cuts, with most analysts now expecting fewer reductions this year.
• Jerome Powell has hinted that the Fed's benchmark rate, currently at a 23-year high, will remain unchanged unless inflation significantly decreases.
• Economic indicators such as strong consumer spending and low unemployment suggest the economy is performing better than anticipated, complicating the Fed's decisions.
• The Fed may also slow the pace of reducing its balance sheet, a move that could impact long-term interest rates.