FOMC December 2024 dot plot and central tendencies of economic forecasts

Here is the dot plot from September 2024 meeting:

Here is the NEW dot plot from the December 2024 meeting:

Below is the table of economic forecasts for GDP, Unemployment, PCE inflation and Core PCE inflation from the December 2024 meeting.

What changes for 2025:

Summary of the economic projections for EOY 2025:

  • GDP higher 0.1% : 2.1% vs 2.0% in September
  • Unemployment rate down -0.1% : 4.3% vs 4.4% in September
  • PCE inflation higher by 0.4%: . 2.5% vs 2.1% in September
  • Core PCE inflation higher by 0.3% : 2.5% vs 2.2% in September

Reaction:

  • 34 basis points of cuts now in the Fed Funds projections vs 48 basis point cuts before the decision

In the US stock market (6 minutes)

  • Dow went from 43551 to 43405 currently
  • S&P went from 6058 to 6027 currently
  • Nasdaq went from 20146 to 20004

In the US debt market:

  • 2-year 4.255% to 4.31% currently
  • 10 year 4.401% to 4.447% currently
  • 30 year 4.612% to 4.635% currently

This article was written by Greg Michalowski at www.forexlive.com. Source