Fed Leaves Rates Unchanged

Fed Leaves Rates Unchanged

Fed Leaves Rates Unchanged

The Fed decided to leave rates unchanged, as expected, and noted that near-term risks to the economic outlook appear roughly balanced, but policymakers are keeping an eye on inflation, which has been slow to pick up despite a tightening of the labor market.

Fed officials expect that, with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market conditions will remain strong.

The CME FedWatch Tool points to the March FOMC meeting as the mostly likely time for the next rate-hike announcement with an implied probability of 86.1%, up from 74.7% yesterday.

The 2-yr yield hasn’t moved since the FOMC release, staying at 2.14%, while the 10-yr yield has ticked up to 2.74% from 2.73%.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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