Here are the Key Takeaways from today's FOMC events:
The FOMC hiked rates a fourth time this year to a decade high, ignoring President Trump’s criticism, and lowered its outlook to two hikes from three next year.
Powell specifically endorsed the dots, citing them in his press conference as a guideline for the committee and a useful tool.
The committee tweaked its guidance to ``some further gradual increases’’ -- a more hawkish development compared with the alternative of dropping the guidance.
Powell said all meetings are live for possible moves next year, but gave no strong hints as to when the Fed would raise next.
There was unanimous support for the hike.
Powell said that Trump's comments had no impact on policy and that the Fed is committed to doing what it thinks is best.
Powell said financial conditions caused a slight downgrade in 2019 forecasts but no real change in the outlook.
Markets took FOMC and Powell as hawkish, with the yield curve flattening and stocks falling.
The dot plots suggest two interest rate hikes next year but Jay Powell basically said they are going to be data dependent next year. The one thing that stood out to me from the press conference was that no one asked questions about the pace of balance sheet run off. That says a lot.Click HERE to subscribe to Fuller Treacy Money Back to top