A G20 summit failure will force the Fed to cut rates

The Fed maintained the target range for the federal funds rate at 2.25 to 2.50%. James Bullard dissented and argued for a 25bps rate cut.

As expected, the Fed delivered a more dovish message compared with the May meeting. According to the projections released at the March meeting, the ‘dot plots’ (Fed policy makers’ individual estimates of what the fed funds rate should be) indicated unchanged rates in 2019 and one hike in 2020. As we predicted in the Fed Preview, the revised dot plots shifted to indicate a more dovish outlook for monetary ...