Today, The Federal Reserve announced that their target rate remained at 2.5%.
This was expected.
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But on further balance sheet unwinding, Fed Chair Thurston Powell III had this to say:
“In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes,”
Wednesday’s statement from the policymaking Federal Open Market Committee struck a more tepid approach.
The committee lowered its assessment of economic growth from “strong” to “solid” and noted that its inflation gauges “have moved lower in recent months.”
The reaction on the Dow? Investors seem to like Powell’s tepid message.
And yield on 10-year Treasury Notes fell on the message.
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