**MNI 5 THINGS:FOMC Hikes 25BP,IOER 20BP;Now 4 Hikes In 2018>

--Five Things We Learned From The June 13 FOMC Statement>}

By Kevin Kastner, Holly Stokes and Sara Haire

     WASHINGTON (MNI) - The following are the key points from the 

FOMC statement released Wednesday: 

     - As expected, the FOMC raised the funds rate to 1.75% to 2.00% on 

an 8-0 vote and lifted the IOER by 20bp to 1.95% to keep it below the 

top range of the funds rate. The dots indicate a shift to 4 rate hikes 

for 2018, keeping 3 hikes for 2019. The median rates were unchanged for 

2020 and the long run.

     - There were number of alterations to the statement, principally a 

removal of the phrase "the federal funds rate is likely to remain, for 

some time, below levels that are expected to prevail in the longer run," 

with no replacement. 

     - The statement also altered the phrase "inflation on a 12-month 

basis is expected to run near the Committees symmetric 2 percent 

objective over the medium term" to now say the FOMC expects that 

"further gradual increases" will be "consistent with sustained expansion 

of economic activity, strong labor market conditions, and inflation near 

the Committee's symmetric 2 percent objective over the medium term." 

     - The statement did not alter the phrase "risks to the economic 

outlook appear roughly balanced" or that the "stance of monetary policy 

remains accommodative."

     - The economic projections show stronger GDP growth and a lower 

unemployment rate at the end of 2018 than previously estimated. Core PCE 

inflation was lifted to 2.0% for the end of 2018. Forecasts for the 

unemployment rate were lower for 2019 (now 3.5%) and 2020 (now 3.5%). 

All longer-run projections were unchanged. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MMUFE$,M$U$$$,MAUDR$]