Summary of the FOMC Decision and Economic Projections

During the press conference, Fed Chairman Jerome Powell emphasized maintaining a higher for longer posture, indicating a cautious approach to rate cuts. Despite optimistic projections for GDP growth and lower unemployment rates, Powell stated that a soft landing is not his base case. Economists suggest that Powell's remarks indicate a willingness to break the back of inflation, implying potential future rate hikes. Event risks such as student loan repayments, a possible government shutdown, and excess savings depletion could impact the Fed's decision-making in upcoming meetings.