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FOMC Leaves Policy Unchanged; No Tweaks to IOER/ON RRP Rates

FED

The Fed left rates and QE unchanged, as expected, but updated its policy statement to reflect a recovery gathering speed.

  • No changes to IOER / ON RRP rates
  • "Inflation has risen, largely reflecting transitory factors."
  • "Amid progress on vaccinations and strong policy support, indicators of economic activity and employment have strengthened. The sectors most adversely affected by the pandemic remain weak but have shown improvement."
  • Fed acknowledges that downside risks have subsided: "The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain." That replaced a phrase saying "poses considerable risks to the economic outlook."
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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