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 1.25% – 1.50%.
The January statement indicated that the US economy remains solid and that strength is broadening. The language on inflation was upgraded to recognize improvements in market based measures of inflation expectations. The Committee continues to acknowledge that its preferred measure of inflation is currently running below its target. The FOMC continues to characterize the path of future rate hikes as gradual.
We can break the Committee’s statement into four parts:
There were no dissenters at the meeting.