**MNI POLICY: FOMC Keeps Rates, IOER Steady; Growth 'Strong'>

--Things We Learned From the November FOMC Statement

By Jean Yung

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

FOMC statement released Thursday:

     - As expected, the FOMC held the fed funds rate target steady at 2% 

to 2.25% on a 9-0 vote and made no changes to the key phrases in the 

statement. 

     - No adjustment was made to the interest on excess reserves rate, 

which remains at 2.20%. The effective fed funds rate has been trading 

equal to the IOER in recent days, leading some analysts to speculate on 

a small cut in IOER Thursday. That did not happen. 

     - No mention of trade policy or recent volatility in equities 

markets. Risks continue to be "roughly balanced." FOMC continues to 

expect "further gradual increases" in the funds rate.      

     - Fed acknowledges that business fixed investment growth has 

"moderated from its rapid pace earlier in the year" but noted that the 

unemployment rate has "declined" and the labor market has continued 

to strengthen. It repeated that economic activity has been rising at a 

"strong rate."  

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

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