Bank of New York Mellon Analyst Expects Fed Statement to Highlight Two-Way Rate Risks

A Bank of New York Mellon analyst said the Federal Reserve’s upcoming Federal Open Market Committee (FOMC) statement was expected to clearly indicate two-way risks to short-term interest rates. According to Jin10, Bank of New York Mellon analyst John Velis said this framing would be consistent with the three dissents seen at the previous FOMC meeting in late April. Velis added that a new Summary of Economic Projections (SEP), including the so-called dot plot, was set to be released. He expected the median projection for the end of 2026 to remove the single rate-cut expectation that had appeared in several recent cycles.