FOMC Releases Somewhat More Upbeat Statement and Keeps Interest Rate Target Unchanged

May 1, 2019

As expected, the federal funds rate target was left at 2-1/4 to 2-1/2%, its level since a 25-basis point hike in December. Officials after the last meeting in March indicated that a rate hike in 2019 is unlikely. Today’s statement reversed some economic downgrades that were made in March related to economic activity, overall inflation, and payroll employment. The interest rate vote was unanimous. The runoff of some assets accumulated during the years of quantitative stimulus is being gradually diminished and will end after September, leaving the balance sheet a tad above $3.5 billion. The FOMC’s next scheduled policy review is scheduled June 18-19 and will include updated forecasts from the committee.

Copyright 2019, Larry Greenberg. No secondary distribution without express permission. All rights reserved.

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