nformation received since the Federal Open Market Committee met in
December indicates that the labor market has continued to
strengthen and that economic activity has continued to expand at a
moderate pace. Job gains remained solid and the unemployment rate
stayed near its recent low. Household spending has continued to
rise moderately while business fixed investment has remained soft.
Measures of consumer and business sentiment have improved of late.
Inflation increased in recent quarters but is still below the
Committee's 2 percent longer-run objective. Market-based measures
of inflation compensation remain low; most survey-based measures of
longer-term inflation expectations are little changed, on
balance.
Consistent with its statutory mandate, the Committee seeks to
foster maximum employment and price stability. The Committee
expects that, with gradual adjustments in the stance of monetary
policy, economic activity will expand at a moderate pace, labor
market conditions will strengthen somewhat further, and inflation
will rise to 2 percent over the medium term. Near-term risks to the
economic outlook appear roughly balanced. The Committee continues
to closely monitor inflation indicators and global economic and
financial developments.
In view of realized and expected labor market conditions and
inflation, the Committee decided to maintain the target range for
the federal funds rate at 1/2 to 3/4 percent. The stance of
monetary policy remains accommodative, thereby supporting some
further strengthening in labor market conditions and a return to 2
percent inflation.
In determining the timing and size of future adjustments to the
target range for the federal funds rate, the Committee will assess
realized and expected economic conditions relative to its
objectives of maximum employment and 2 percent inflation. This
assessment will take into account a wide range of information,
including measures of labor market conditions, indicators of
inflation pressures and inflation expectations, and readings on
financial and international developments. In light of the current
shortfall of inflation from 2 percent, the Committee will carefully
monitor actual and expected progress toward its inflation goal. The
Committee expects that economic conditions will evolve in a manner
that will warrant only gradual increases in the federal funds rate;
the federal funds rate is likely to remain, for some time, below
levels that are expected to prevail in the longer run. However, the
actual path of the federal funds rate will depend on the economic
outlook as informed by incoming data.
The Committee is maintaining its existing policy of reinvesting
principal payments from its holdings of agency debt and agency
mortgage-backed securities in agency mortgage-backed securities and
of rolling over maturing Treasury securities at auction, and it
anticipates doing so until normalization of the level of the
federal funds rate is well under way. This policy, by keeping the
Committee's holdings of longer-term securities at sizable levels,
should help maintain accommodative financial conditions.
Voting for the FOMC monetary policy action were: Janet L. Yellen,
Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L.
Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Neel
Kashkari; Jerome H. Powell; and Daniel K. Tarullo.
Posted by sschulman on 1st of Feb 2017 at 02:23 pm
Not your typical Fed announcement day. No wild swings. No huge
volume surge. I guess it's all about interpretation. Maybe Yellen
tried too hard to reassure.
FOMC Statement
Posted by steve on 1st of Feb 2017 at 01:57 pm
nformation received since the Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate stayed near its recent low. Household spending has continued to rise moderately while business fixed investment has remained soft. Measures of consumer and business sentiment have improved of late. Inflation increased in recent quarters but is still below the Committee's 2 percent longer-run objective. Market-based measures of inflation compensation remain low; most survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will rise to 2 percent over the medium term. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments.
In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1/2 to 3/4 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and expected progress toward its inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Jerome H. Powell; and Daniel K. Tarullo.
Not your typical Fed announcement
Posted by sschulman on 1st of Feb 2017 at 02:23 pm
Not your typical Fed announcement day. No wild swings. No huge volume surge. I guess it's all about interpretation. Maybe Yellen tried too hard to reassure.
Another missed normalization opportunity. They
Posted by a_l_ on 1st of Feb 2017 at 05:06 pm
Another missed normalization opportunity. They are clueless.