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

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