The Federal Reserve Keeps Interest Rates Unchanged as Scheduled, Maintaining Status Quo for the Fourth Consecutive Meeting

BlockBeats News, June 18th, the Federal Reserve kept the benchmark interest rate unchanged at 3.50%-3.75% for the fourth consecutive meeting, in line with market expectations. The Fed removed phrasing about further rate adjustments in its statement. All members agreed on this rate decision. The Fed's dot plot showed that out of 19 officials, only 18 submitted dot plot forecasts. Among the 18 officials, 1 official believed that by the end of 2026, there should be a total rate hike of 75 basis points, 5 officials believed there should be a total rate hike of 50 basis points, 3 officials believed there should be a total rate hike of 25 basis points, 8 officials believed the rate should remain unchanged, and 1 official believed there should be a total rate cut of 25 basis points.

“Fed Whispers” by Nick Timiraos on the Fed's interest rate decision: The Fed's dot plot this time showed a clear hawkish bias. Out of the 18 officials, 9 expect at least one rate hike this year, with 6 even anticipating multiple hikes. In contrast, only 1 official expects a rate cut this year; additionally, 1 participant (likely Fed Chair Powell) did not submit a Summary of Economic Projections (SEP). Meanwhile, the Fed's policy statement underwent a comprehensive revision from start to finish, significantly reducing the text length. Overall, the communication framework of this meeting has undergone a significant change, potentially leading to a readjustment of market expectations for the rate path.

After the Fed announced its rate decision, according to Bitget data, spot gold saw a short-term decline of over $40, the US Dollar Index (DXY) rose by 35 points in the short term. Bitcoin dropped over 1% briefly, currently trading at $65,417.