Fed Leaves Rates Unchanged as Expected, Dot Plot of Future Policy Splits
The Wall Street Journal reports Fed Holds Rates Steady, Hints at Possible Cut if Outlook Dims.
While the central bank’s rate-setting committee expected the economy’s expansion to continue, “uncertainties about this outlook have increased,” it said in a statement. “In light of these uncertainties and muted inflation pressures, the committee will closely monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion.”
Nine of 10 members of the rate-setting committee voted to maintain the federal-funds rate in a range between 2.25% and 2.5%. St. Louis Fed President James Bullard dissented in favor of lowering rates, the first dissent since Fed Chairman Jerome Powell took lead of the central bank in February 2018.
Here is the entire Press Release of the FOMC decision.
The above is from the WSJ Statement Tracker.
There is not much of a reaction so far in the stock markets or bond markets.
The yield on the 10-year note declined a basis point to 2.046%, holding above the 2% mark for now but the next poor economic report will likely turn that into a one-handle.
For all of today’s heightened anticipation, the results were quite anticlimactic.
Mike “Mish” Shedlock