State Street Bank: The Federal Reserve is weighing the actual necessity of a 3% target interest rate

According to Jinshi News, State Street Bank analyst Marvin Loh stated that the Federal Reserve lowered interest rates as expected, but this can only be interpreted as a hawkish move since officials did not change their forecasts for the next two years. He pointed out that this will cause rates to very slowly slide toward the theoretical 3% neutral rate. Given the significant upward revision of GDP in the Summary of Economic Projections (SEP), the inclusion of the word "magnitude" in the statement to describe additional policy adjustments suggests that some members of the Federal Open Market Committee are considering the actual necessity of reaching the current long-term "dot plot" target of 3%.