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The Federal Reserve wrapped up its latest Open Market Committee meeting yesterday and, as expected, maintained its fed funds target rate at the 4.25-4.50% level. This was the third consecutive meeting at which the central bank held policy steady after cutting rates three times in late 2024. The non-decision indicates that the Fed still has concerns over lingering inflation and is keeping an eye on the overall economy. Further, the central bankers, like the rest of the country, are uncertain about the potential impact on GDP and prices from the recent tariff initiatives. CPI inflation has indeed fallen from readings above 9.0% in 2022 to readings below 3.0% -- but lately has struggled to extend its downward trend toward the central bank's goal of 2.0%. Meanwhile, though, the unemployment rate is still historically low, even as GDP growth dipped into negative territory last quarter due to a quirky import number. Based on the healthy employment environment, the economy is not in dire need of lower rates. Yet. Yesterday's meeting did not include any projection materials. At the Fed's meeting in March, the central bankers updated their economic and interest-rate forecasts. These call for economic growth in the 1.8%-2.0% range through 2027, and an inflation rate down to 2.0% by 2027. At that point, the Fed anticipates its federal funds target rate to be 3.0%-3.25%, implying a real yield of about 1.25%. That's a forecast for five rate cuts over the next 30 months.

IDEX Corp. designs and manufactures fluidics systems and specialty engineered products for a range of industrial end markets, including healthcare, transportation, food, water, and energy. The shares are a component of the S&P 500. The company has approximately 9,000 employees.

Otis is the world's largest elevator and escalator manufacturing, installation, and services company. The company's 72,000 employees operate from more than 1,400 branches and offices and include 40,000 field technicians. It has more than two million maintenance units under contract and operates in 200 countries. Otis was founded in 1853 and is based in Farmington, CT. The shares are a component of the S&P 500.

Based in Dallas, Jacobs Solutions provides professional services including consulting, technical, scientific and project delivery for the government and private sectors. The company has approximately 60,000 employees. Jacobs acquired PA Consulting (a consultancy that specializes in strategy, technology and innovation) in March 2021. In FY24, Jacobs Solutions generated revenue of $11.5 billion.