The Federal Reserve is convening for its two-day FOMC (Federal Open Market Committee) meeting on Tuesday. While officials are expected to hold interest rates where they are, investors will be watching the monetary policy outlook and how many rate cuts could be projected in the remainder of 2024.

Yahoo Finance Senior Reporter Jennifer Schonberger explains the details of the Fed's "dot plot" and how it is viewing recent inflation data ahead of Chair Jerome Powell's press conference on Wednesday, June 12.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video Transcript

That is looking to kick off its two day June policy meeting today.

And although investors are pretty sure the fed will hold rates steady, they're more focused on rate cut timing for the rest of the year here with more it.

Yahoo finance is Jennifer.

Good morning lie.

That's right.

The Federal Reserve kicks off its two day policy meeting here in Washington where it's widely expected to hold interest rates steady in the range of five and a quarter to 5.5%.

But all eyes will be on how the outlook for the rate path could change this year.

Officials are expected to scale back the number of rate cuts to two or one from three previously projected new projection on Wednesday will come in the form of the so called dot plot A chart updated quarterly that shows each fed officials projection about the direction of the fed funds rate.

Be officials have warned in recent weeks, they're looking to hold rates at current levels for longer after a scare that inflation may be stalling or re accelerating in the first quarter.

But the latest readings on inflation confirm prices are not accelerating though they may be moving down slower than thought.

We'll get a fresh reading on the consumer price index for May Wednesday morning.

Ahead of the decision that chair Powell has made very clear, he thinks the fed will need more than a quarter's worth of data to make a judgment on whether inflation is decisively falling toward the central bank's 2% target before cutting rates along with a new round of interest rate projections.

Wednesday's meeting will bring fresh forecasts for inflation, the economy and unemployment.

Powell will also hold his regular press conference.

Powell is expected to reiterate that rates will need to be held higher for longer to gain confidence that inflation is falling.

Investors are looking to see whether Pell has encouraged it all by the latest on inflation though, that will be contingent on Wednesday morning's release of CP I.

If CP I comes in as expected, falling 1/10 of a percent from the previous month.

Frankly, guys, that's not going to be enough to inspire confidence for the fed back to you.

All right, Jennifer, I'll be sitting on the end of my ergonomic chair waiting for your email that the meeting has finally started there.

Thanks so much Jennifer.