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of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessMNI: PBOC Net Drains CNY248 Bln via OMO Tuesday
MNI Eurozone Inflation Insight – November 2024
**MNI POLICY: FOMC Will Be 'Patient' Amid 'Muted Inflation'>
--Prepared to Adjust Balance Sheet Plan If Needed
--Rates Remain Primary Policy Tool
--Commits to Abundant Reserves Policy Implementation Framework
By Jean Yung
WASHINGTON (MNI) - The following are the key points from the
FOMC statement released Wednesday:
--The FOMC held rates steady at a 2.25% to 2.5% range and said it
"will be patient" in light of "muted inflation" and "global economic and
financial developments," a pledge likely to be interpreted by investors
as a bias toward keeping rates on hold for the first half of the year.
--In updated guidance on balance sheet normalization, the FOMC said
it is "prepared to adjust any of the details for completing balance
sheet normalization in light of economic and financial developments."
However, it also emphasized that the fed funds rate is its "primary
means" of adjusting the stance of monetary policy. It would consider
only altering the size and composition of its balance sheet if
conditions were to warrant a more accommodative policy "than can be
achieved solely by reducing the federal funds rate," it said.
--Forward guidance on "further gradual increases" in rates was
removed as well as its assessment on balance of risks, as the FOMC
pivoted further toward data dependence. In place of a commitment to
higher future rates, the committee said it continues to view economic
growth, strong labor market conditions and inflation near its 2%
symmetric target as "most likely outcomes."
--The FOMC formally committed to the abundant reserves policy
implementation framework it has employed since the financial crisis, a
decision long expected by market participants. The Fed intends to ensure
control over short-term interest rates through the fed funds rate,
rather than through open market operations to management reserves
supply, it said.
--Its discussion of inflation noted that market-based measures of
inflation compensation have "moved lower in recent months," though
survey-based measures were "little changed" and overall inflation and
core inflation "remain near" 2%.
--MNI Washington Bureau, Tel: +1 202-371-2121; email: dcoffice@marketnews.com
[TOPICS: MT$$$$,MMUFE$,M$U$$$,MAUDR$]
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.