Fed Holds Rates Steady, Says Almost Nothing

Mish

The Fed held its baseline rate at 150 to 175 basis points. It also made two tiny changes in its statement.

Statement Tracker

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The above from the Wall Street Journal Statement Tracker.

Two Changes

  • Spending is now moderate, not strong
  • Inflation is "returning to" rather then "nearing" the objective.

Mike "Mish" Shedlock

Comments (14)
No. 1-3
Tony Bennett
Tony Bennett

Well, actually another change, too. Can kicked repo facility. Again. And like day follows night there will be further can kicks.

December statement:

The Committee also directs the Desk to continue conducting term and overnight repurchase agreement operations at least through January 2020 to ensure that the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities, and to mitigate the risk of money market pressures that could adversely affect policy implementation.

Today:

The Committee also directs the Desk to continue conducting term and overnight repurchase agreement operations at least through April 2020 to ensure that the supply of reserves remains ample even during periods of sharp increases in non-reserve liabilities, and to mitigate the risk of money market pressures that could adversely affect policy implementation.

Bam_Man
Bam_Man

Can't wait to see what happens to their so-called "stock market" when they EVENTUALLY announce they are ending the daily Re-Po operations.

CautiousObserver
CautiousObserver

There was another policy "clarification" Powell made in the Q&A. Paraphrasing, he said: Some people think the Fed is okay with sustained inflation below 2%. We are not. We intend to reach our target of 2%.


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