Fed: No Move

Like this is a surprise?

Against this backdrop, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.

The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way. This policy, by keeping the Committee’s holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; James Bullard; Stanley Fischer; Jerome H. Powell; and Daniel K. Tarullo. Voting against the action were: Esther L. George, Loretta J. Mester, and Eric Rosengren, each of whom preferred at this meeting to raise the target range for the federal funds rate to 1/2 to 3/4 percent.

The market is up a bit – but the real issue now is What exactly will cause the market to move higher from here?  Or, is there nothing else in the way of happytalk that can be tossed in?

We shall see…

11 thoughts on “Fed: No Move”

  1. Hillary wins – rate cuts, mega QE and a full on assault of zero interest rates.
    Trump wins – rate rises, market crashes and it’s all Bush’s fault er I mean Trumps.

    • Yes, no doubt the billionaire born a millionaire has been victimized and discriminated against his entire life. How he ever pulled himself up from such a meager childhood….

      You have to register as a D to get the morning faxes directly from Yellen!

      • Improving net worth by six orders of magnitude is an impressive feat for anyone. Nine is truly rare. Trump was not born a millionaire – he borrowed it from his dad.

  2. We have a new quarter starting in less than 2 weeks. Won’t that become the reason for the continued market melt up? Does the Fed really need a reason to pump the market, though?

  3. “Committee” decided that if people really cared they’d a) boycott movies for just one week, b) don’t consume beer for just 2 days, or c) leave car unused for just one weekend. The ‘sheeple’ have so much power, but are sadly too retarded to use their strength. I lack the strength for further comment.

  4. Don, doesn’t matter who is elected, market crashes either way.

    The Fed can’t raise rates. If they do the banks are toast.

  5. May all beings be lovingly fulfilled not killed ,hummm I guess I’ll have to think about that one
    I read somewhere that England or Britain cops are trying for months or is it years before they’re able to drive or wear a gun but here in the United States is war mentality stick the machine gun in the cops hand, first day on the beach remember not to long ago the first day Beat cop shot and killed someone how terrible no training

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