FOMC statement

FOMC Statement Introduces More Ambiguity in Forward Guidance

October 30, 2019

A key sentence after the previous two rate cuts announced on July 31 and September 18th had read, “As the Committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain […] More

Federal Funds Rate Target Cut and Controlled Reduction of Fed Balance Sheet Suspended Two Months Sooner than Planned

July 31, 2019

The Federal Open Market Committee opted for a 25-basis point interest rate cut, not the 50-bp that some had urged. The released statement also revealed a decision to “conclude the reduction of its aggregate securities holdings in the System Open Market Account in August, two months earlier than previously indicated.” The Committee was divided in […] More

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, […] More

FOMC No Longer Inclined to Hike Fed Funds Rate This Year

March 20, 2019

Today’s released FOMC statement asserts that the slowdown of growth in the final quarter of 2018 persisted in the early going of 2019. Headline inflation has declined, too, and market-based measures of inflation compensation “have remained low in recent months.” The final three paragraphs of the statement are identical to the one from January 30th. […] More

Today’s FOMC Statement on Monetary Policy – Analysis

January 30, 2019

Today’s statement accelerated the shift in forward guidance rate directionality away from a one-sided risk toward less accommodation and greater normalization by introducing an element of two-sided risk and less certainty about the timing and number of increases if such should be deemed appropriate. The prior statement on December 19 had added the bolded word “some” […] More

FOMC Statement and Forecasts

September 26, 2018

The Federal Open Market Committee as expected raised its federal funds target by a quarter percentage point to a range of 2.00 – 2.25%. The released statement Repeated the same first paragraph used after the August 1 statement, which deals with economic conditions. Made no changes to the second paragraph that projects how its mandate […] More

FOMC Statement

May 2, 2018

Today’s just-released FOMC statement sets the stage for a rate hike in June. The view regarding economic activity and labor market conditions is as upbeat as in March. The comment on investment is even more encouraging. On inflation, officials as much as say that the target is close at hand. A decision not to change […] More

FOMC Statement

January 31, 2018

The Federal Open Market Committee as assumed by  market players decided to keep its 1.25-1.50% federal funds target range unchanged and did so by a unanimous 9-0 vote in the last meeting to be chaired by Janet Yellen. A statement released today at 19:00 GMT characterizes the labor market as improving, economic growth as solid, […] More

FOMC Statement Conveys Little New Information

November 1, 2017

The FOMC statement was released at 18:00 GMT. Fifteen minutes later, key market prices — the dollar, 10-year Treasury yield, gold, oil and the DOW — were barely changed. The message was one of continuity. The November 1, 2017 FOMC statement reads almost identically to the one from the prior meeting on September 20. The current […] More

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 […] More