Responses to the Federal Open Market Committee continue, this via GS (just a quick one)
FOMC raised the funds rate target range to 2¼% -2½%
- as widely expected
median dot in the Summary of Economic Projections now shows a 2-1 baseline for rate hikes in 2019-2020, compared to 3-1 in September
- but the average dot declined significantly, a dovish surprise suggesting broad endorsement of the new baseline
Changes to the post-meeting statement were generally dovish as well.
- While the growth characterization was more upbeat than we had expected, the policy guidance was a bit more dovish than we had expected.