**MNI Five Things:FOMC Hikes 25 BP;Still Sees 3 Hikes In 2018>

--Five Things We Learned From The March 21 FOMC Statement>}

By Kevin Kastner, Jean Yung, Holly Stokes and Sara Haire

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

FOMC statement released Wednesday: 

     - There was changes to the statement to suggest a slightly more 

hawkish, while the dots still show three hikes for 2018, but was very 

close to four hikes for 2018. There was also an upgrade to three hikes 

in 2019. 

     - There was an even split of six dots each for three hikes and four 

hikes in 2018, with two below that range and one above. Had one dot 

shifted from the 2.125% batch to the 2.375%, the median would have moved 

up.

     - FOMC raised the funds rate to 1.50% to 1.75% on 8-0 vote, which 

was almost universally expected. The language was a bit more hawkish, 

with inflation on a 12-month basis "expected to move up in the coming 

months" rather than just expected to move up "this year." Also, economic 

activity is now expected to expand in the medium term, perhaps a 

reference to fiscal policy, but not specifically stated.

     - The median expectation for rates at the end of each year were 

raised for 2019 (now 2.9%), 2020 (now 3.4%) and the long run (now 

2.9%), so more rate hikes are expected than in the previous SEP.

     - The economic projections show stronger GDP growth and a lower 

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

inflation remained at 1.9% for the end of 2018. Forecasts for the 

unemployment rate were lower for 2019 and 2020 (both 3.6%), along with 

stronger 2019 GDP growth and slightly faster inflation growth.

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

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