Analysts at Standard Chartered note that the FOMC raised the fed funds target range (FFTR) by another 25bps to 1.75-2.0% on 13 June.
“It also upgraded the median 2018 FFTR projection to 2.4% (from 2.1%), and more unexpectedly, moved up the 2019 median to 3.1% (from 2.9%), raising the expected path of policy and leading to a notable flattening in money-market curves around the 2019 point.”
“The interest rate on excess reserves (IOER) was raised by 20bps, as telegraphed in the May meeting minutes, for technical reasons.”
“Long-run projections were unchanged, indicating that the FOMC continues to see recent and near-term projected economic strength as cyclical, for now. These decisions are largely in line with our expectations.”
“There were hawkish changes to the statement.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.