The Fed's dot plot shows a mere 25 basis point rate cut in 2024

The Fed kept the benchmark interest rate unchanged for the seventh consecutive time at 5.25%-5.50%, in line with market expectations. The Fed's dot plot shows a 25 basis point cut in 2024 (down from 75 basis points expected in March). In addition, the dot plot suggests four rate cuts in 2025 (down from three expected in March).
The dot plot shows that among the 19 officials, four officials believe that there should be no rate cut in 2024, seven officials believe there should be one rate cut, and eight officials believe there should be two rate cuts. No officials believe there will be three or more rate cuts this year (down from 10 officials previously).
The Federal Reserve believes it is inappropriate to cut interest rates until it has greater confidence in the sustainable direction of inflation towards 2%.