Expectations of multiple interest rate cuts in 2024 had faded long back and now the Federal Reserve has almost assured that it isn't going to happen anymore. On Jun 12, Federal Reserve Chairman Jerome Powell said in the post-FOMC meeting statement that the central bank sees the possibility of only a single rate cut this year, sharply down from three rate cuts hinted earlier this year. This came as the Federal Reserve kept interest rates unchanged in its June FOMC meeting in its current range of 5.25-5.5%. Although inflation slowed somewhat in April and maintained its declining pace in May, the Federal Reserve maintains a hawkish stance as it is still sharply higher than the Fed's 2% target. Powell acknowledged that inflation has declined sharply over the past year but remains elevated. Powell's comments didn't impact investors much as it was expected that the Federal Reserve would keep interest rates unchanged. Also, markets started pricing in a single 25 basis point rate cut this year over the past few weeks. In fact, several economists predicted no rate cuts this year. Also, the latest "dot plot" from the FOMC meeting suggested a potential total rate cut of 1% by 2025. Consequently, the terminal rate of the Fed funds rate is currently projected to reach 4.1% by the end of 2025. However, the Federal Reserve's forecast for the long-term interest rate, which serves as a benchmark that neither stimulates nor constrains growth, has been revised up to 2.8% from an earlier projection of 2.6%. This indicates that Fed officials are leaning toward a ...