FOMC Says ‘Soft’ In­fla­tion Won’t De­rail Hike in Dec.

The Bond Buyer - - Market News -

The Fed­eral Re­serve on Wed­nes­day kept its bench­mark in­ter­est rate un­changed, as ex­pected, and of­fered an up­beat as­sess­ment of the econ­omy, hint­ing eco­nomic con­di­tions were evolv­ing broadly as they ex­pected head­ing into the end of the year.

The Fed­eral Open Mar­ket Com­mit­tee’s post-meet­ing pol­icy state­ment made no ad­just­ments to its for­ward guid­ance but sig­naled pol­i­cy­mak­ers viewed the econ­omy as stay­ing on track for a third in­ter­est rate hike by year’s end, as pro­jected in Septem­ber.

The vote to keep the fed funds rate in the 1.0% to 1.25% tar­get range was unan­i­mous. Ran­dal Quar­les, the newly ap­pointed gov­er­nor to the Fed Board, cast his first vote with the com­mit­tee.

In its pol­icy state­ment, the FOMC re­peated that it “ex­pects that eco­nomic con­di­tions will evolve in a man­ner that will war­rant grad­ual in­creases in the fed­eral funds rate.”

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