Analysts at Scotiabank explained that following its latest policy meeting, the Federal Reserve Open Market Committee (FOMC) left interest rates unchanged with the Fed Funds rate still in the 1.00-1.25% range.
Key Quotes:
"There was a unanimous 9-0 vote for the decision which was also in line with expectations with no significant expectations that the Fed could decide to lift interest rates once again."
"As far as the economy is concerned, the committee reported that job gains have been solid while household spending and business investment have continued to expand."
"The FOMC again stated that near-term risks to the economy appear roughly balanced, but inflation developments are being monitored closely."
"On inflation, there were remarks that overall inflation have declined and are running below 2.0%, but the committee still expects inflation to stabilize around the 2.0% objective in the medium term."
"The FOMC still expects to continue the process of raising interest rates. Commentary on starting the balance-sheet reduction plans was a crucial part of the statement –there were comments that the plans would start relatively soon provided the economy evolves broadly as expected which was a slightly stronger commitment than in the previous statement."
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