Analysts at ANZ note that the US Fed raised rates 25 bps, indicated two more hikes this year and three more in 2019.
“The revised interest rate profile comes amid a solid growth outlook and greater confidence that inflation is converging on target.”
“The Fed’s projections imply a sustainable attainment of the Fed’s dual mandate of full employment and 2.0% inflation. The longer run projections were unchanged with trend growth estimated at 1.8%, unemployment at 4.5% and inflation at 2.0%.”
“Fed Chairman Powell confirmed that the Fed will hold a press conference after every FOMC meeting starting in January 2019.”
“In another change, the IOER will now be set 5 bps below the upper limit of the fed funds target range, in a purely technical move. Today the IOER was increased 20bps.”
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