The Fed projects the first rate reduction in December

There is no reason to believe the US Central Bank as it has changed its mind a couple of times over the last year

The article summarizes the June Fed meeting. To see the most recent recap of the Fed decision please find out the article about the July meeting:

The Fed should have cut rates on Wednesday

On Wednesday, June 12, the Federal Reserve left its interest rates steady in a range of 5.25%-5.5% for a 7th straight meeting explaining at the same time that inflation has eased but remains elevated.

To remember, what happened at the previous central bank meetings and how has rate expectations changed see the below articles:

Is the Fed heading towards another monetary policy mistake?

Is the Fed going to HIKE rates this year?

The Fed left rates steady as expected at 5.50%, stocks and gold at all-time highs

An overall expression among investors, economists, and market watchers about this meeting was confusion. This is due to the Fed’s update of their economic forecasts despite promising CPI and PPI inflation reports for May.

Let’s then recap the most important takeaways from the event, the market reaction, and what to expect in the future.