Summary
TLDR: Federal Reserve holds interest rates at existing level, projecting three rate cuts by 2024. Central bank cites persistent inflation and improving employment data. Chair Jerome Powell indicates peak policy rate for tightening cycle, stocks rise, cryptocurrencies mixed. Markets expect rate cut in June.
Key Points
1. The Federal Reserve chose to hold interest rates at their existing level following the Federal Open Market Committee two-day policy meeting.
2. Central bankers are projecting three rounds of rate cuts by the end of 2024, as indicated in materials released on Wednesday.
3. The rate hike pause is the fifth consecutive pause since the central bank had been raising interest rates from March 2022 to July 2023, with persistent inflation and improving employment data influencing the decision to hold rates.