Fed Holds Rates, Signals One More Hike This Year

The Fed maintains interest rates between 5% and 4.45%, citing solid growth and elevated inflation. They leave room for another rate hike this year and remove two rate cuts for the next two years. The Fed's dot plot indicates a potential rate increase, with a median effective rate of 5.1% for 2024. Economic projections show stronger growth, lower unemployment, and reduced core inflation. The market reacts with slight declines in SP500 and NASDAQ, while bond yields rise and the US dollar strengthens. Analysts discuss the Fed's revised projections and potential economic outcomes.

What range did the Federal Reserve decide to keep the interest rates within?

• 3% to 3.5%

• 5% to 5.5%

• 4% to 4.5%

• 6% to 6.5%

How many members of the Open Market Committee believe there will be a rate increase this year?

• Eight members

• Twelve members

• Fourteen members

• Ten members

What is the revised growth forecast for the economy in 2023?

• 1.0%

• 3.0%

• 2.1%

• 1.5%

What is the expected unemployment rate by the end of this year according to the Fed's forecast?

• 4.1%

• 3.8%

• 4.5%

• 3.5%

How did the SP500 and NASDAQ react to the Federal Reserve's decision?

• SP500 declined, NASDAQ rose

• Both indices declined slightly

• SP500 remained stable, NASDAQ declined

• Both indices rose significantly