US Fed June Policy Decision: Status Quo, with a Hawkish Message
19-Jun-2023
The June US Fed monetary policy verdict came in as expected with Fed pausing and
maintaining the federal funds rate in the range of 5.00 per cent to 5.25 per cent
with no dissent on the decision. The macroeconomic and federal funds rate
projections, however, underwent notably hawkish revisions, which have tempered
expectations of a pivot in the policy within this year. The dot plot is particularly
hawkish with median forecast for the year-end 2023 fed funds rate at 5.6 per cent
vs. 5.1 per cent as per March projection, with as many as 12 members expecting
rate to be at this level or higher.