Here is the dot plot from September 2024 meeting:
Here is the NEW dot plot from the December 2024 meeting:
Below is the table of economic forecasts for GDP, Unemployment, PCE inflation and Core PCE inflation from the December 2024 meeting.
What changes for 2025:
Summary of the economic projections for EOY 2025:
GDP higher 0.1% : 2.1% vs 2.0% in SeptemberUnemployment rate down -0.1% : 4.3% vs 4.4% in SeptemberPCE inflation higher by 0.4%: . 2.5% vs 2.1% in SeptemberCore PCE inflation higher by 0.3% : 2.5% vs 2.2% in September
Reaction:
34 basis points of cuts now in the Fed Funds projections vs 48 basis point cuts before the decision
In the US stock market (6 minutes)
Dow went from 43551 to 43405 currentlyS&P went from 6058 to 6027 currentlyNasdaq went from 20146 to 20004
In the US debt market:
2-year 4.255% to 4.31% currently10 year 4.401% to 4.447% currently30 year 4.612% to 4.635% currently
This article was written by Greg Michalowski at www.forexlive.com.
