- Fed funds rate kept at 1.0-1.25% as was widely expected
- Little changed in the statement
- Muted market reaction
As was widely expected the Fed funds rate has been kept at its present level of 1.0-1.25% following the conclusion of the latest policy meeting. Selected comments from the accompanying statement are shown below:
- Expect economy to evolve in a way warranting gradual hikes
- Labour market continued to strengthen, unemployment declined
- Market based inflation compensation gauges still low
- Risks roughly balanced, watching inflation closely
- Inflation stabilizing around 2% medium term
There are no real fireworks here with the statement not deviating far from the previous version. It appears that a December hike remains probable. The market reaction has been fairly muted with no clear moves seen since the announcement.
This article is provided for general information purposes only. Any opinions, analyses, prices or other content is provided for educational purposes and does not constitute investment advice or a recommendation. Any research has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Any information provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it.
Past performance is not necessarily indicative of future results, and any person acting on this information does so entirely at their own risk, we do not accept liability for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.