As expected, the FOMC raised the target Federal Funds Rate by 25 basis points to a target range of 2.00% – 2.25%. The word “accommodative” was removed from the statement which caused a knee-jerk reaction of stocks and U.S. Treasury yields moving higher. In the press conference, Chairman Powell indicated that the dropping of “accommodative” does not signal a change in future policy. The current Fed “dot plot” still points to one more rate increase in 2018.
All expectations and data points are sourced from Bloomberg as of 9/26/18 unless noted otherwise.
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