MNI:Five Things We Learned From The December 13 FOMC Statement>

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

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

FOMC statement released Wednesday: 

     - FOMC raised the funds rate to 1.25% to 1.50% on 7-2 vote. Evans 

and Kashkari dissented, wanting no rate hike.

     - There was little change in the statement and the dots suggest 

three hikes in 2018

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

unchanged for 2018 (2.1%) and 2019 (2.7%), but the outlook for 2019 was 

bumped up to 3.1% from 2.9%. It was unchanged at 2.8% for the long run.

     - The FOMC still expects "gradual increase" in the funds rate and 

risks remain "roughly balanced"

     - The economic projections show bumped up expectations for GDP in 

2018, with a lower unemployment rate (3.9%) expected for 2018 and 2019, 

and for 2020 (4.0%). Core PCE inflation expectations were unchanged.

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

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