As widely expected, the FOMC held monetary policy steady today, leaving the target for the federal funds rate in a range
of 2.25% to 2.50%. The main revision to the statement included the phrase “will be patient” in regard to future rate hikes.
The Fed also changed their assessment of economic activity as solid instead of strong and described inflationary pressures
as muted. The Federal Reserve is still in the mode of withdrawing stimulus by unwinding its balance sheet by $30 billion
in Treasuries and $20 billion in mortgage backed securities per month but they are in no hurry to raise interest rates. The
Fed said again that they will continue to monitor global economic and financial developments to assess the policy outlook.
**For informational purposes only, via Economic Focus