Econintersect: The Federal Open Market Committee (FOMC) – the board of directors of the Federal Reserve increased the federal funds rate as expected. Additionally, there seems to be movement to begin reducing the Federal Reserves’ balance sheet.
…. the Committee currently expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated ….
The economic projections of the FOMC and the Regional Presidents is at the end of this post.
Analyst Opinion of the FOMC Meeting Minutes
Not much can be added as this outcome was generally expected. There must have been a lot of discussion during the meeting on the moderation of inflation growth.
The Federal Funds rate was changed from “3/4 to 1 percent” to “1 to 1-1/4 percent”. Bloomberg / Econoday forecast was for a 1/4 point rate increase.
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