FOMC statement
A Change in Risk Balance Between Fed’s Twin Goals But Not Enough So to Lock and Load a Near-Term Rate Cut Just Yet
January 31, 2024
The first critical modification in today’s FOMC statement declares The Committee judges that the risks to achieving its employment and inflation goals are moving into better balance. That’s a new idea. Fed monetary policy is guided by twin mandates that occasionally cannot be addressed simultaneously. The Fed is coming off such a period when price […] More
FOMC Statement and Some Comments on the Subsequent Press Conference
November 1, 2023
The federal funds target was kept at 5.25-5.50 percent for the second review in a row. Beginning with the meeting in March 2022 and without any pause, the rate was lifted initially 25 basis points, then 50 bps in May, 75 bps each in June, July, September and November, 50 bps in December and 25 […] More
FOMC Statement and Powell’s Press Conference
March 22, 2023
A 25-basis point hike of the federal funds target range to 4.75-5.0% is in line with analyst expectations. The schedule for reducing holdings of Treasury securities, agency debt ad agency mortgage-backed securities likewise remains the same, meeting street expectations. An inserted paragraph addresses the recent banking system strains: The U.S. banking system is sound and […] More
FOMC Statement, Projections, and Press Conference
September 21, 2022
The FOMC increased the federal funds target by 75 basis points, meeting but not exceeded the majority forecast of investors. The new target is a range of 3.0-3.25%. The statement made just one modification, describing growth in spending and production as modest. In the July 27 statement, such was said to have “softened.” The policy […] More
FOMC Statement: No Surprises…. Decision on Size of September Meeting Not Made
July 27, 2022
The size of the interest rate hike, 75 basis points, matched expectations and the previous increase in mid-June. More increase in the future “will be appropriate.” Quantitative tightening that reduces the size of the Fed balance sheet by via not fully reinvesting matured principal of maturing assets, will proceed on the scheduled outlined in May. […] More
FOMC Statement and Press Conference: No Big Surprises and A Singularly Anti-Inflation Approach Articulated
January 26, 2022
As expected, the FOMC statement signals that the fed funds rate will likely be raised “soon,” code for the clear possibility of lift-off at the next meeting in March. Inflation has been recategorized from “having exceeded 2%” to “well above 2%.” An assertion of “a strong labor market” was inserted into the statement as a […] More
FOMC Statement and Powell Press Conference
November 3, 2021
The FOMC statement as expected laid out a schedule of tapered new asset purchases that will phase out that activity altogether after next June. Today’s statement indicates another unanimous 11-0 decision but does not address the timing of a subsequent interest rate lift-off. Monthly increases in Fed holdings of Treasury Securities will be reduced by […] More
FOMC Statement and Powell’s Press Conference
July 28, 2021
Aside from some inserted clarification regarding the timetable to tapering quantitative stimulus, little was changed in today’s FOMC statement. The economy has made progress toward these goals [of maximum employment and inflation rising to 2 percent and being on track to moderately exceed 2 percent for some time], and the Committee will continue to assess […] More
FOMC Statement, Projections, and Press Conference
March 17, 2021
The FOMC voted unanimously (11-0) to retain the 0 to 1/4 percent federal funds target and continuing quantitative stimulus (purchases of at least $80 billion per month of Treasury bonds and at least $40 billion of agency mortgage-backed securities. Forward guidance was not modified but the released statement did tweak its projections. Growth conditions were […] More
FOMC Statement and Press Conference
January 27, 2021
Today’s FOMC statement makes some modifications in the second and third paragraphs that deal with current U.S. economic conditions and their outlook. December’s press release had talked about a continuing recovery of activity and employment, while today’s assessment speaks of a “moderating” recovery recently concentrated in sectors affected by Covid. A phrase “progress on vaccinations” […] More
