Fed Eyes Long Pause, No Rate Hikes in 2020
The Fed held rates steady and issued this FOMC Statement.
The Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective.
Dot Plot Synopsis
The DOT Plot is from Economic Projections.
- Thirteen participants expect no hikes in 2020.
- Four foresee a single hike.
Statement Little Changed
The above from the Wall Street Journal Statement Tracker.
Dot Plot Amusement
Two years ago, I posted this dot plot, with these comments.
Today's dot plot is not as silly.
However, I strongly suggest the next move is another set of cuts, not hikes.
Note that not a single participant expects a cut.
Once again, fade that consensus.
Mike "Mish" Shedlock