Fed satys on hold, dot plot shows six members expect one rate this year

The Federal reserve decided to keep the target for the fed funds unchanged at 0.25-0.50% in June. The FOMC noted that labor market has slowed despite economic pickup and reiterated the economy will warrant only gradual increases in the federal funds rate.

The bank also published economic projections and the dot plot, which shows now six members expect one rate hike this year, versus only one member in March.

The Fed downgraded 2016 and 217 growth forecasts. 2016 growth downgraded to 2.0% from 2.2% in the March projection, 2017 growth downgraded to 2.0% from 2.1%.

The Fed raised 2016 PCE inflation forecast to 1.4% from 1.2%.  2017 and 2018 unchanged.