EY: It is expected that the dot matrix will still show two 25 basis point interest rate cuts by the end of the year

According to BlockBeats, on June 19th, EY economist Gregory Daco stated that the Federal Reserve is expected to maintain the benchmark interest rate unchanged at 4.25% -4.50%. The recent comments from the Federal Reserve have reinforced a wait-and-see attitude, as officials have not shown the urgency to adjust policies in the face of increasing economic uncertainty. The policy statement may not undergo significant changes. The FOMC may reiterate that inflation remains "somewhat high", labor market conditions are "stable", and unemployment rates are "stable at a lower level". It may be reiterated that the risk of rising unemployment and inflation has increased, especially considering the uncertainty of the economic outlook. The dot plot of the median expected interest rate is expected to remain unchanged, with two 25 basis point rate cuts by the end of the year. The expected dot matrix still shows a further 50 basis point interest rate cut to 3.4% in 2026, and another rate cut to 3.1% in 2027. The median estimate of the long-term neutral interest rate by policy makers may remain unchanged at 3%. (Golden Ten)