The Semi-Annual Monetary Policy Report released.>

FED: The Semi-Annual Monetary Policy Report released repeated that 

further gradual interest rate increases would be consistent with FOMC 

objectives. 

- They repeated that even with these recent interest rate increases, 

"monetary policy remains accommodative." 

- Policymakers are careful when using policy rules to evaluate the 

stance of monetary policy due to highly uncertain factors like "estimates

of the neutral interest rate."

- Higher oil prices are "likely to restrain household consumption" but  

this lower consumer spending is likely to be offset by increases in 

production and investment in the oil sector. 

- They repeated that economic activity has increased at a "solid pace" 

and inflation has moved up, to be a "little above the FOMC's 2% 

objective, "boosted by a sizable increase in energy prices."

- Hourly labor market comp has been "moderate" likely due to low 

productivity growth, despite strong labor mkt conditions. 

- Higher disposable income has been due in part to tax cuts and "Fiscal 

policy will likely provide a moderate boost to GDP growth this year"

- Increased concerns about trade policy and the foreign economic outlook 

"weighed on longer-dated tsy yields"

- The spread b/w the EFFR and rate of interest on reserves "could narrow

over time" as the Fed sec holdings and supply of reserves gradually declines.