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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 held the funds rate steady at 1.25% to 1.50% on a 9-0 vote,
but adds the word "further" to its forward guidance, saying that
conditions will "warrant further gradual increases in the federal funds
- The inflation language was a bit more upbeat, saying that
"inflation on a 12-month basis is expected to move up this year and to
stablize around the Commitee's 2 percent objective over the medium term"
rather than saying that inflations is "expected to remain somewhat below
2 percent in the near term but to stablize around the Commitee's 2
percent objective over the medium term."
- The statement also said that "market-based measures of inflation
compensation have increased in recent months but remain low", rather
than just saying they "remain low." Still, they note that inflation,
both overall and core, remains below 2%.
- Outside of inflation, the changes to the statement were minor but
still upbeat, with mentions of the hurricane-impact removed. Employment,
household spending, business fixed investment growth was seen as "solid"
while the unemployemnt rate has stayed low.
- The reference to near-term risks to the outlook remain "roughly
balanced" and the inflaiton developments are still being monitored
** MNI Washington Bureau: 202-371-2121 **