Yes, this was Federal Reserve Chair Janet Yellen’s last Open Market Committee (FOMC) meeting. And the FOMC raised, as widely expected, the Target rate (upper bound) to 1.50%.
Over the past year, The Fed has raised their target rate from 0.50% on 12/13/16 to 1.50% on 12/13/17, a 100 basis point increase over 1 year. Meanwhile, the Fed’s holdings of Treasury notes and bonds has declined (unwind).
Even since Bernanke and Yellen (Beryellen?) launched us on the QE train, core inflation has rarely exceeded 2% YoY and wage growth has been terrible.
Alas, Yellen and NY Fed’s Dudley, two ardent doves, will be gone.
Raven Gray hair and ruby lips
Sparks Bubbles fly from her finger tips
Courtesy of Jesse from Jesse’s Cafe Americain.
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