Fed Keeps Target Rate Unchanged, Yellen Sings “Tomorrow” For Balance Sheet Unwind

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

As expected, The Federal Reserve Open Market Committee (FOMC) kept their target rate unchanged at 1.25%.


But The Fed announced that asset-shrinking (unwinding their $4.4 trillion balance sheet) would begin in October. Janet Yellen announced the balance sheet will be allowed to normalize, with reinvestments slowed/stopped starting in October. In fact, here is Federal Reserve Chair Janet Yellen announcing the date of the asset-shrinking.

The Fed’s DOT plot (green) is lower today than it was previously marked in gray) reflecting dimming prospects for rate increases in the future.


BUT they are expecting a rate increase at the December FOMC meeting.



Janet Yellen announcing the balance sheet unwinding accompanied by Goldman Sach’s Lloyd Blankfein.



Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.

Leave a Reply