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FOMC Maintains Rates, QE Guidance; Median 2 Hikes By End-2023; IOER Hike

FED
  • Updated interest rate projections show the median committee member now sees two rate hikes by end-2023, with 7 out of 18 members wanting liftoff next year (so median dot for 2022 still for near-zero rates)
  • FOMC made no changes to its QE and rates guidance, maintaining it will keep buying assets until it sees "substantial further progress" toward its mandates
  • Hikes IOER and ON RRP rates by 5 bps each
  • Acknowledges vaccine progress in statement
  • Change in inflation language: "inflation having run persistently below" the 2% longer run goal, instead of "inflation running persistently below"
  • Employment forecasts nearly the same
  • Growth and inflation forecasts upgraded
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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