The market's knee-jerk reaction to the FOMC announcements was to sell the dollar on the basis that the dot plot indicated just three hikes in 2018 and not four for which some of the market had been long for.
The next risk if the live press conference, Fed gov. Powell's first.
Key notes:
- Raises view of estimated neutral fed funds rate following years in which it lowered estimates.
- Median projection sees fed funds rate at 2.875 pct at end-2019 compared with 2.688 pct in dec forecast.
- Says economic outlook has strengthened in recent months.
- Says inflation on 12-month basis is expected to move up in coming months.
- Says economic activity has been rising at 'moderate rate;' previously described rate as 'solid'.
- Says job gains have been strong; growth rates of household spending and fixed investment have moderated.
- Repeats near-term risks to the economy appear "Roughly balanced".
- Fed vote in favor of policy was unanimous.
Live video:
About the FOMC:
The press conference is about an hour long and has 2 parts - first a prepared statement is read, then the conference is open to press questions. The questions often lead to unscripted answers that create heavy market volatility.
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