By:- Ajitabh Bharti, Executive Director and Co-founder of CapitalXB
The Federal Reserve held rates steady, but the latest dot plot reveals a more complex internal outlook. With nine members projecting a 25 bps hike and six expecting a 50 bps increase by end-2026, the committee appears notably divided on the policy path ahead. Attention, however, centered on the new Fed Governor. While his decision to refrain from offering personal projections was anticipated, it also represented a key opportunity to reinforce credibility by clearly reaffirming the Fed’s commitment to price stability.Markets were looking for stronger conviction. The immediate reaction in short-term U.S. yields underscores lingering skepticism toward the new leadership.