Instant Analysis of Today’s September FOMC Meeting
- FOMC Delays – no interest rate hike in September, still planning one this year
- Cites recent global economic and financial developments
- Could restrain economic activity and put further downward pressure on inflation
- FOMC scales back median rate hike projections for 2015, 2016 and 2017 by 0.25%
- Almost a quarter of FOMC participants now see the first rate hike in 2016 or 2017
- Lowers GDP and Inflation forecasts a bit for 2016 and 2017
- Unemployment rate forecast for 2015, 2016, and 2017 lowered by 0.3 to 0.2pct
- Long-run Fed Funds rate median drops to 3.5% from 3.8% at June meeting
- Inflation expected to remain low over the near-term
- PCE-core not back to 2.0% target until 2018
- Market reaction- S&P 500 +1.3%, 10-Yr Treasury at 2.21% down 8 bps, USD weakens
Click here to read the full analysis: Instant Analysis of Today’s FOMC Decision
Tags: economy