ANZ forecasts that the Federal Open Market Committee will announce dot plot cuts

<ul><li>ANZ are forecasting dot polt cuts at the Federal Open Market Committee (FOMC) meeting next weekexpect the FOMC will lower the 2023 and 2024 dot plot</li><li>dot plot could be cut by 50+bp</li></ul><p>Saying that Fed Funds have not reached predicted levels even though inflation is lower</p><p>AND predict that:</p><ul><li>Powell will need to maintain hawkish guidance during the transition to lower growth and inflation so is likely to stress patience</li><li>long run estimate for Fed Funds could rise</li><li>extended moderation in inflation is raising confidence that aggregate price gains will return to target</li><li>but progress on inflation is uneven across different cohorts and will take time to become balanced at 2.0%</li><li>Inflation has performed better than the Federal Open Market Committee forecast in September</li></ul><p>December Federal Open Market Committee (FOMC) meeting is on the 12th and 13th.</p><p>–</p><p>Earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/fomc-preview-ubs-predicts-fed-to-be-cautious-need-to-protect-progress-on-inflation-20231205/" target="_blank" rel="follow">FOMC preview: UBS predicts Fed to be cautious, need to protect progress on inflation.</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.