In the big picture there was no real change.
The US Consumer Price Index for May surprised with a decline yesterday, which made the market completely reassess interest rates twice by the end of the year and expect the Fed to be even more pessimistic. Unfortunately, this was not the case because the Fed's forecasts and the point chart surprised the hawkish side.
The Dot Plot also showed only one interest rate cut for this year compared to two cuts that the market expected before the decision was made.
They had the opportunity to revise their forecasts after seeing the CPI data today but decided not to, maybe they just wanted to be on the cautious side, and postponed the interest rate cut forecast as well.
Inflation expectations have also been adjusted upwards but this may make it easier to cut the interest rate if inflation is below their expectations.
In general it was a little tighter than expected.
To follow the press conference and Jerome Powell's speech yesterday, click here
