let's bring in our next or our panel for much more on the FED decision today we've got former fed special adviser Andrew Levan also with us we've got Abigail watt aine research economists great to have both of you today Abigail let me just start with you and get your take on what we heard from the Fed so far yeah I think it's uh really interesting I think we were expecting the the kind of final hike to remain in the dots for this year I perhaps think where we've um maybe underestimated the changes was in that kind of I guess 50 basis point move up in the in the dot for 2025 um I think that really kind of signals to I mean 2024 I think that really signals to the market this kind of higher for longer narrative and I think this is um the the kind of line that the FED is trying to walk between this kind of um perhaps a undue uh loosening in financial conditions too soon and I think that's something that Pal's really going to have to try and walk the balance on um in the press later today Andrew to get your take as well just what you made of the FED uh news here what they did what they said and what do you see going forward yeah well I agree with Abigail actually I think that the the shift upward in the medium-term um do plot is actually really important um and I think the the extent to which uh their statement today uses the word solid to Describe economic activity is a good word um the the fears that the people had six months ago that we were heading into recession I think have really faded so one thing the FED is reluctant to do is to talk about risks and I think that the truth is there's an upside risk to the inflation Outlook they're Outlook uh in the projections they still very Rosy they expect that by the end of next year inflation is going to be down around two and a half close to their target but we can think of lots of scenarios where inflation's still running at four or 5% um and then a question I guess I'm eager to hear from Abigail what she thinks about this um um you know is the going to need to do more in in that scenario where over the next 6 to n months inflation's not um sort of stabilizing near their target the way they were hoping
