Fed Keeps Rates Steady; Hikes IOER, ON RRP By..>

FOMC: Fed Keeps Rates Steady; Hikes IOER, ON RRP By 5 bps Each

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- Fed directed the Desk to continue overnight repo operations "at least 

through April 2020" to ensure that the supply of reserves remain ample.

- Fed increased the IOER to 1.60%, from 1.55% to foster trading in the 

fed funds market at rates well within the FOMC's target range. 

- Fed says current stance of monetary policy is 'appropriate' to support 

sustained expansion of economic activity and to see inflation 'returning 

to' the Committee's symmetric 2% objective. 

- Fed says household spending has been rising at a 'moderate' pace, and 

business investment and exports remain weak.

- The ON RRP was raised to 1.50% from 1.45%. 

- No announcement of a standing repo facility.