Stocks little changed after Federal Reserve signals rate cuts to come as growth slows while inflation rises
US stocks stayed largely flat after the Federal Reserve kept rates in a range of 4.25% to 4.5%, as was universally expected, and cut its growth forecast while boosting the outlook for inflation.
The central bank also put out its so-called “dot plot,” which lays out officials’ views on where policy rates will go if the economy unfolds according to their expectations (obviously, a big “if”). The median policymaker thinks 50 basis points of easing will be delivered this year, the same as in March, but now sees less easing to follow in 2026.
Traders were pricing in about 46 basis points of easing through year-end heading into the decision.
A survey performed by Macro Policy Perspectives showed that Fed watchers were roughly split between those who expected the dot plot to signal the median official anticipated one or two cuts this year.
