The Fed updated its projections for the economy.

No change on GDP growth. A recession isn't expected.

They expect slightly higher unemployment peaking at 4.4% (we are at 4.2% right now).

They expect lower inflation. They expect us to reach the target earlier than expected.

And perhaps the biggest change- they expect interest rates to fall more and earlier than expected.

We are on track now for a full 100 basis point cut in rates before the end of the year. Today the Fed cut rates by 50 basis points. They expect another 50 basis point cut in the last two Fed meetings.

And they expect a full 100 basis point cut in 2025. And a 50 basis point cut in 2026.