FOMC Leaves Its Monetary Policy As Is
May 3, 2017
The post-meeting FOMC press release didn’t contain any news to move markets much one way or the other. Regarding U.S. economic conditions, slower growth last quarter is considered “likely to be transitory,” and there’s been no change in the committee’s projection of moderately-paced economic growth with roughly balanced risks. On-year inflation is already just slightly below the 2% longer-run medium-term objective. A somewhat further strengthening of labor market conditions and stable inflation around 2% over the medium term are projected. A spell of slower private consumption is not expected to endure. The citations of less unemployment and firm business investment constitute assessment upgrades.
The statement avoids language that might suggest the likeliest timing of the next interest rate increase and did not change any language in the paragraph pertaining to management of the Fed’s balance sheet.
Copyright 2016, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: FOMC statement
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