Highlights from the FOMC Statement

FED REMOVES LANGUAGE FROM PRIOR STATEMENT THAT STATED GLOBAL, FINANCIAL DEVELOPMENTS CONTINUED TO POSE RISKS
FED VOTE IN FAVOR OF POLICY WAS 9 TO 1, GEORGE DISSENTED, PREFERRING TO SEE A RISE
FED SAYS HOUSEHOLD SPENDING GROWTH HAS MODERATED BUT HOUSEHOLDS’ REAL INCOME HAS RISEN AT A SOLID RATE
FED SAYS LABOR MARKETS HAVE IMPROVED FURTHER EVEN AS ECONOMIC GROWTH APPEARS TO HAVE SLOWED
FED REPEATS INFLATION IS EXPECTED TO REMAIN LOW IN NEAR TERM, BUT RISE TO 2 PCT OVER MEDIUM TERM
FED REMOVES LANGUAGE FROM PRIOR STATEMENT THAT STATED GLOBAL, FINANCIAL DEVELOPMENTS CONTINUED TO POSE RISKS
FED DOES NOT GIVE AN ASSESSMENT OF ITS BALANCE OF RISKS IN STATEMENT
FED SAYS WILL CLOSELY MONITOR INFLATION INDICATORS AND GLOBAL ECONOMIC, FINANCIAL DEVELOPMENTS
FED LEAVES TARGET INTEREST RATE UNCHANGED AT 0.25-0.50 PCT
FED VOTE IN FAVOR OF POLICY WAS 9 TO 1, GEORGE DISSENTED, PREFERRING TO SEE A RISE IN THE TARGET RATE TO 0.5-0.75 PCT
FED REPEATS EXPECTS ECONOMIC CONDITIONS WILL EVOLVE IN WAY THAT WARRANTS “ONLY GRADUAL INCREASES” IN FED FUNDS RATE
FED REPEATS WITH GRADUAL ADJUSTMENTS TO MONETARY POLICY, ECONOMIC ACTIVITY WILL EXPAND AT MODERATE PACE, LABOR MARKET WILL STRENGTHEN