Available
indicators suggest that economic activity has been expanding at a solid pace.
Job gains have remained low, and
the unemployment rate has been little changed in recent months. Inflation remains elevated.
somewhat
The Committee seeks to achieve maximum employment and
inflation at the rate of 2 percent over the longer run. Uncertainty
about the economic outlook remains elevated. The implications of developments. The
in the Middle East for the U.S. economy are uncertain
Committee is attentive to the risks to both sides of its dual mandate.
In support of its goals, the Committee decided to maintain
the target range for the federal funds rate at 3‑1/2 to 3‑3/4 percent. In
considering the extent and timing of additional adjustments to the target range
for the federal funds rate, the Committee will carefully assess incoming data,
the evolving outlook, and the balance of risks. The Committee is strongly committed
to supporting maximum employment and returning inflation to its 2 percent
objective.
In assessing the appropriate stance of monetary policy, the
Committee will continue to monitor the implications of incoming information for
the economic outlook. The Committee would be prepared to adjust the stance of
monetary policy as appropriate if risks emerge that could impede the attainment
of the Committee’s goals. The Committee’s assessments will take into account a
wide range of information, including readings on labor market conditions,
inflation pressures and inflation expectations, and financial and international
developments.
Voting for the monetary policy action were Jerome H. Powell,
Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa
D. Cook; Beth M. Hammack; Philip N. Jefferson; NeelAnna Paulson; and Christopher J. Waller.
Kashkari; Lorie K. Logan;
Voting against this action was
Stephen I. Miran, who preferred to lower the target range for the federal funds
rate by 1/4 percentage point at this meeting.
——————————————————————————————————
The Fed is sending the message to the new Fed Chair Kevin Warsh that the Fed votes may not “follow the leader”.
The stocks are lower with the Nasdaq down -102 points or -0.42%. The S&P is down -0.36%. Yiels have moved higher with the 2 year now up 9.7 basis points at 3.942%. The 10 year is at 4.415% up 6.0 basis points.
The USD is higher with the USDJPY moving to a high of 160.40. The high for the year is at 160.455. That is the highest level going back to July 2024.
The EURUSD moved below the 200 day MA at 1.1675. The low came in at 1.1672 but has pushed back above that key MA level.
The market sees a 25% chance for a 25 basis point hike in April 2027 up from 20% before the decision.
