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FOMC Makes No Changes To Policy, Guidance; 1M Term Repo Operations To End

FED

The FOMC made no changes to its policy settings Wednesday, as expected, leaving rates in a 0%-0.25% and pledging to buy at least USD120 billion in assets a month until substantial further progress toward the Fed's dual mandate. The vote was unanimous.

  • "The pace of the recovery in economic activity and employment has moderated in recent months, with weakness concentrated in the sectors most adversely affected by the pandemic."
  • Added vaccinations to "The path of the economy will depend significantly on the course of the virus, including progress on vaccinations."
  • No other changes to statement and no mention of fiscal policy
  • In a sign of greater market stability, the New York Fed will no longer offer regularly-scheduled one-month term repo operations after Feb. 9
  • New Fed Governor Chris Waller voted for the first time
  • Reaffirmed longer run framework with no changes
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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