The June FOMC meeting was “basically a wash”, says the team at BofA Global Research, comprising analysts Aditya Bhave, Mark Cabana, Alex Cohen, as well as the US economics and global economics rates and foreign exchange (forex) teams.
Analysts are mixed on their forecast after the US Federal Reserve held the benchmark federal funds rate at 4.25% - 4.5% at the Federal Open Market Committee (FOMC) on June 18.
While the FOMC voted unanimously to hold the benchmark rates, which have remained unchanged since the beginning of this year, there was a split when it came to interest-rate decisions. Seven officials forecast no rate cuts, up from four officials in March, and two others estimated that there would be one cut this year. Ten officials also expected to see two rate cuts before the end of 2025, according to media outlets including Bloomberg. The dot plot medians still showed two cuts this year and one in 2026.
