Highlights of the January 30, 2019 FOMC statement
- Fed says will be 'patient' on future moves
- Prepared to adjust any details for completing balance sheet normalization in light of economic and financial developments
- Says will continue to unwind balance sheet by forgoing reinvestment of up to $50 billion in maturing securities each month
- Economic activity rising at 'solid' rate (a downgrade from 'strong' previously)
- Vote unanimous
- Market-based measures of inflation compensation have moved lower but survey measures little changed
- Patience on rates in light of global economic and financial developments and muted inflation pressures
- Balance of risks removed from statement (used to say 'roughly balanced')
- Main statement
- Statement Regarding Monetary Policy Implementation and Balance Sheet Normalization
- Full statements
There was a lot of talk about something less dovish than hoped but the Fed doves took charge of this on and stock markets love it while the US dollar is getting slammed.
There's nothing remotely hawkish in any of this. The Fed has moved to a neutral stance.
