The Fed’s New Interest Rate Projections Could Impact the Market

Elmar Voelker, a senior fixed income analyst at LBBW, stated in a report that the greatest potential for market volatility at next week’s Federal Reserve meeting lies in the new key interest rate projections. So far, the so-called “dot plot” suggests the Fed will cut rates twice this year, and money market pricing is almost fully aligned with the Fed’s forecasts. In our view, any adjustment to the dot plot could catch some market participants off guard. (Jin10)