A summary of Goldman Sachs response to the Federal Reserve FOMC on Wednesday (US time)
GS highlight the 'bottom line':
- FOMC left the funds tate target range unchanged at 0-0 25%
- provided new guidance on the timeline for tapering asset purchases by announcing that it will continue to increase its asset holdings at the current rate "until substantial further progress has been made toward the Committee's maximum employment and price stability goals"
- FOMC did not announce charges to the maturity composition of its asset purchases
- Summary of Economic Projections (SEP) was somewhat more positive than we expected in terms of growth, the labor market, and inflation.
- However, the dot plot showed only one additional particpant (five total. vs. our expectation of six projecting a rate hike by 2023.
More here:
- FOMC statement: Will continue pace of bond buys until 'substantial' progress on goals
- Full FOMC statement from the December 16 rate meeting
- Powell opening statement: We will continue to provide powerful support until the recovery is complete
- Powell Q&A: We won't associate 'substantial further progress' with numbers
- A look at the Fed's central tendencies for GDP, employment and inflation
