Following the Fed’s announcement, please see below for market views from the Global Fixed Income, Currency & Commodities Team (GFICC):
Consistent with our and the market’s expectations, the Federal Open Market Committee (FOMC) kept the Fed Funds rate unchanged at 1 – 1.25%.
The November statement indicated that the underlying strength of the US economy remains firmly intact despite weather impacts. The language on inflation was unchanged. The Committee continues to acknowledge that their preferred measure of inflation is currently running below their target and remains a watch item going forward. The FOMC continues to characterize the path of future rate hikes as gradual. The statement also highlighted that balance sheet normalization (as described in the June FOMC addendum) is underway.
We can break the Committee’s statement into four parts:
There were no dissenters at the meeting.