![fomc next meeting fomc next meeting](https://i.ytimg.com/vi/QfsX6gyuJow/maxresdefault.jpg)
Hence, the whole forecasted path of the federal fund rate has become steeper as it’s expected to reach 1.9% this year and 2.8% next year, compared to the 0.9% and 1.6% seen earlier. The central bankers expect another four hikes in 2024 instead of just the three painted in the previous dot plot. That’s a huge hawkish turn compared to December, when they perceived only three interest rate hikes as desired. Brace yourselves! According to the fresh dot plot, the FOMC members see seven hikes in interest rates this year as appropriate. Last but not least, a more aggressive tightening cycle is coming. Slower economic growth accompanied by more stubborn inflation makes the economy look more like stagflation, which should be positive for gold prices. Inflation is forecasted to decline in the following years, but only to 2.7% in 2023 and 2.3% in 2024, instead of the 2.3% and 2.1% seen in December.
![fomc next meeting fomc next meeting](https://s.yimg.com/uu/api/res/1.2/56k5axbfK_wZaQzn1zGnCA--~B/aD0zMjE2O3c9NDgyNDtzbT0xO2FwcGlkPXl0YWNoeW9u/https://img.huffingtonpost.com/asset/5c6c6c44250000230480a63a.jpeg)
What’s more, the FOMC participants see inflation now as even more persistent because they expect 4.3% PCE inflation at the end of 2022 instead of 2.6%. This is a bit strange, as slower GDP growth should be accompanied by higher unemployment, but it’s a positive change for the gold market. So, how do they look at the economy right now? As the table below shows, the central bankers expect the same unemployment rate and much slower economic growth this year compared to last December. The statement was accompanied by the latest economic projections conducted by the FOMC members. These changes in the statement were widely expected, so their impact on the gold market should be limited. economy are highly uncertain, but in the near term the invasion and related events are likely to create additional upward pressure on inflation and weigh on economic activity. The invasion of Ukraine by Russia is causing tremendous human and economic hardship. economy are not yet known, except for the general upward pressure on inflation and downward pressure on GDP growth: Instead, it added a paragraph related to the war in Ukraine, pointing out that its exact implications for the U.S. It’s also worth mentioning that the Fed deleted all references to the pandemic from the statement.
![fomc next meeting fomc next meeting](https://az705044.vo.msecnd.net/20170201/federal-reserve-big-table-view.png)
In addition, the Committee expects to begin reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities at a coming meeting. However, the central bankers also announced the beginning of quantitative tightening, i.e., the reduction of the enormous Fed’s balance sheet, at the next monetary policy meeting in May. It was, of course, the most important part of the FOMC statement. In support of these goals, the Committee decided to raise the target range for the federal funds rate from 1/4 to 1/2 percent and anticipates that ongoing increases in the target range will be appropriate. The move also marks the start of the Fed’s tightening cycle after two years of ultra-easy monetary policy implemented in a response to the pandemic-related recession.
![fomc next meeting fomc next meeting](https://financeandmarkets.com/wp-content/uploads/2019/03/FOMC-meeting.jpg)
It was the first hike since the end of 2018. Finally! Although one Committee member (James Bullard) opted for a bolder move, the US central bank lifted the target range for its key policy rate only by 25 basis points, from 0-0.25% to 0.25-0.50%. As widely expected, the Fed raised the federal funds rate. Q4 2021 hedge fund letters, conferences and more