Скачать или смотреть Macro Minute with iShares: June 2023 Fed Pause on Interest Rate Hike

The Federal Reserve delivered their June #FOMC rate decision today – here’s what you need to know.

The #Fed decided to pause their rate hiking cycle, keeping the benchmark policy range at 5.00% - 5.25% as broadly expected. While the decision to pause was already priced into markets, a change to the dot plots was the topic of focus in the meeting. While investors already anticipated at least one 0.25% rate hike between the June and July meetings, the new median rate projection moved +0.50% higher by the end of the year.

What do we think? This latest move makes sense to us – the Fed has hiked rates 5% in just 16 months which has helped to bring headline inflation to 4% from just over 9% 12 months ago. During the press conference, Chair Powell made very clear that they want time to assess incoming data and its implications for monetary policy. Overall, the press conference supported that the path of rates will be likely higher for longer.

Check out our take with iShares investment strategist David Jones in our new Macro Minute with iShares.