Consistent with recent market expectations, the Federal Open Market Committee declined to raise rates this month.
The FOMC’s September statement on monetary policy echoed that of July. Importantly, while the Committee left open the possibility of a rate hike later in the year, the Committee added language suggesting that it is carefully watching global economic and financial market developments.
The Committee also published a new series of SEPs (Summary of Economic Projections, the ‘dot’ plots), showing that the Committee’s expectations for the Fed Funds rate, in both the short and longer term, are lower; however the anticipated pace of rate hikes remains consistent.
The Committee’s statement:
Over the near term, we expect:
Over the medium/longer term, we expect: