FOMC statement

Spotlight Today Belongs to Central Banks

January 28, 2015

Financial markets await the FOMC statement due at 14:00 EST (19:00 GMT).  Meaningful changes are not anticipated.  No press conference is scheduled afterward. The Monetary Authority of Singapore (MAS) tweaked monetary policy after its first unscheduled policy meeting in thirteen years.  Ordinarily policy, which is oriented around the management of the currency rather than a […] More

FOMC Statement: Some Observations

December 17, 2014

The statement released after the FOMC’s eighth and final meeting of 2014 expressed more optimism in labor market trends, deleting the qualifying adjective “somewhat” from improving labor market conditions and replacing “gradually diminishing” with “continues to diminish” in the comment about underutilization of labor resources. Sub-target inflation attributed only “partly” to declining energy prices, meaning […] More

FOMC Statement Doesn’t Rock the Boat

October 30, 2013

Today’s statement from the FOMC announces no changes in policy settings and the same forward guidance as before.  One finds in the document very few modifications from the previous statement released September 18.  Here are four. The word “generally” has been added to the assertion that information since the prior meeting suggests economic activity has […] More

Today’s FOMC Statement

March 20, 2013

Today’s statement from the Federal Open Market Committee repeated the January 30th statement in most respects, including The retention of all existing interest rate and quantitative monetary policy settings. The retention of the same economic data-driven policy guidelines for the future of the federal funds target.  These are thresholds, not targets that would automatically necessitate […] More

New FOMC Statement Not More Hawkish than December Statement

January 30, 2013

Based on minutes of the December meeting, it had seemed plausible that the Fed might tweak the communication of its policy in such a way as to suggest greater consideration over an earlier end to quantitative easing than imagined previously.  That didn’t happened.  Nor did today’s statement change any existing policy, which was as analysts […] More

FOMC Statement

December 12, 2012

The latest FOMC statement takes several fresh actions, none very surprising, without an accompanying significant modification of its characterization of growth conditions or inflation. No comment on the dollar or net exports appears, but a softer exchange rate is an implicit objective. Quantitative easing will continue at the start of 2013 at a pace of […] More

The FOMC Statement: No Surprises or Market Reaction

October 24, 2012

The October 24th statement from U.S. monetary officials made only a few generally inconsequential changes to the previous September 13 statement.  The final meeting of 2012 on December 11-12 promises to be more newsworthy.  By then, a lame-duck congress will be dealing with the fiscal cliff, and the identity will be known of the next […] More

FOMC Statement

September 13, 2012

The rumored steps of fresh monetary stimulus were essentially correct despite a statement that upgraded the assessment of overall economic activity as well as views of household spending and the housing sector.  Inflation was ruled “subdued” after the prior observation on August 1 that such had “declined since earlier this year.”  Jeffrey Lacker, Richmond Fed […] More

FOMC Statement

April 25, 2012

Today’s statement from the FOMC has extremely similar text to the previous statement of March 13 and the same 9-1 vote, with Richmond Fed President Lacker again dissenting because he “does not anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate through late 2014.” Almost all of the […] More

FOMC Statement: Same Policy Promise but More Optimistic Economic Appraisal

March 13, 2012

Greater optimism was expressed by the Federal Open Market Committee in today’s statement than in the prior one released on January 25. An allusion to slower global growth was deleted from the first sentence. The new statement explicitly observes that the U.S. unemployment rate has declined notably. January’s statement said business investment has slowed, but […] More