FOMC Review

FOMC Statement, Forecasts, and Press Conference

September 22, 2021

Reassured investors reacted bullishly in an initial way. Stocks, which already were higher on the day, rose further. Long-term Treasury yields slid a bit, and so did the dollar. The FOMC statement confirmed “that a moderation in the pace of asset purchases may son be warranted,” which investors believe implies sometime in the coming quarter. But […] More

Comment on FOMC Statement, Forecasts, and Powell Press Conference

December 11, 2019

The Federal Open Market Committee left the federal funds target unchanged at 1.25-1.50% and reached that decision unanimously. A policy change was not expected, and there was nothing meaningfully new presented in the formal statement released today. Likewise, the updated forecasts included nothing remarkable. Projected GDP growth of 2.0% next year, 1.9% in 2021 and […] More

FOMC Review

March 21, 2018

As expected and revealed in a published statement and new economic projections, the Fed implemented a sixth 25-basis increase in its federal funds target range to 1.50-1.75% and upgraded its forecasts GDP growth in 2018 and 2019, the labor market over the coming three years, and the core PCE inflation index for 2019 and 2020. […] More

Minor Modifications Only in FOMC Statement

July 26, 2017

Today’s FOMC statement left the federal funds rate target range at 1.0-1.25% as widely expected. The document added virtually nothing meaningfully new to the market’s understanding of current policy and the intentions of its officials, yet it produced a further significant drop in the dollar, which hit a low of 1.1741 per euro during the […] More

Not Much to Discern from Latest FOMC Policy Statement

February 1, 2017

The FOMC document released today reads almost identically to the previous December statement when the federal funds target range was lifted 25 basis points to 0.50-0.75%. The range was not increased further today, and the decision, like December’s verdict, was unanimous by a 10-0 vote despite at changeover in the voting-privileged district presidents. At the December […] More

FOMC Review

June 15, 2016

The FOMC did not raise interest rates at its June meeting, but confidence was expressed in the released statement and in Yellen’s press conference that GDP is picking up nicely in the second quarter.  She would not rule out a hike in July.  Wages are accelerating, and the June employment data will be important.  The […] More

Federal Reserve Manages to Communicate a Comforting Message as a New Policy Chapter Begins

December 16, 2015

The Federal Open Market Committee released a statement confirming the universally held belief that the federal funds rate would be raised by 25 basis points and that the balance sheet of the central bank would not be squeezed just yet.  The statement was accompanied by fresh forecasts going out to 2018 that were modified only […] More

FOMC Statement and Press Conference

March 18, 2015

Within the two hours after today’s FOMC statement was released and 30 minutes from the end of Janet Yellen’s press conference, the Dow Jones Industrial Average advanced 1.8%, the dollar fell by 1.8% against the euro and 0.6% versus the yen, and the 10-year Treasury yield swung from five basis points above the 2.00% threshold […] More

FOMC Statement Makes No Radical Shifts and Draws a Dissenting Vote

July 30, 2014

The latest Federal Open Market Committee statement  No longer calls the jobless rate “elevated” but asserts that other measures indicate “significant underutilizatrion of labor resources.” Notes that “inflation has moved somewhat closer to the Committee’s longer-run objective.” Also “judges that the likelihood of inflation running persistently below 2% has diminished somewhat.” Cuts monthly asset buying […] More

A Few Takeaways from Today’s Federal Reserve Actions

June 18, 2014

The formal FOMC statement revealed almost nothing really useful.  Most of the text was repeated language, and the modifications were unsurprising.  The economic assessment of rebounding activity and a further improvement of the labor market were predictable.  So was the decision to scale back asset buying by another $10 billion per month.  Nobody dissented, the […] More