Yahoo Finance’s Jennifer Schonberger reports:
The Federal Reserve is widely expected to hold rates steady at the conclusion of its policy meeting Wednesday, but the big question is whether Chairman Jerome Powell and his colleagues will stay committed to two rate cuts in 2025.
The answer will come in the form of the “dot plot,” a chart updated quarterly that shows each Fed official’s prediction about the direction of the central bank’s benchmark interest rate.
The last dot plot, released in March, revealed a consensus among Fed officials for two cuts this year as some were already factoring the uncertainties of President Trump’s economic policies into their projections. They made the same prediction last December.
Many Fed watchers expect central bank officials to stick with what they have already signaled as they weigh numerous unknowns, including the ultimate outcome of trade policies and the ripple effects triggered by a new conflict between Israel and Iran.
“I think they’ll end up keeping two cuts, but will stick with narrative that they need more time to see effects of tariffs on inflation,” Wilmington Trust senior bond fund manager Wilmer Stith said.
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