Fed’s FOMC Votes 8-0 to Leave Fed Fund’s Rate Unchanged 

Fed’s FOMC Votes 8-0 to Leave Fed Fund’s Rate Unchanged 

Fed’s FOMC Votes 8-0 to Leave Fed Fund’s Rate Unchanged

$DIA, $SPY, $QQQ, $RTUX, $VXX

The FOMC left the benchmark interest rate unchanged, and reiterating their plan to gradually lift borrowing costs to keep the economy expanding at a healthy pace.

Economic activity has been “rising at a strong rate,” and the unemployment rate “has stayed low,” the FOMC Committee said Wednesday in a statement.

“Household spending and business fixed investment have grown strongly.”

The FOMC said it expects that “further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the committee’s symmetric 2 percent objective,” repeating language from its June statement.

Fed Chairman Jerome Powell is trying to nurture the 2nd longest US expansion on record by slowly reducing the amount of support that monetary policy provides to growth. The economy is riding a tailwind from tax cuts and higher federal spending, though a trade war threatens to dent growth.

The FOMC described risks to the outlook as “roughly balanced,” and restated that “monetary policy remains accommodative” while leaving the target range for its benchmark policy rate at 1.75 to 2%.

Most Fed officials in June projected up to 4 rate hikes for Y 2018, implying 1 or 2 more moves this year.

Mr. Powell’s next planned media briefing to follow the FOMC’s gathering on 26 September.

Fed policy makers weighed their action against a generally positive backdrop.

The US economy grew at a 4.1% pace in Q-2, its fastest pace since Y 2014. Inflation is close to the Fed’s 2% goal, rising at 2.2% for the FY ending June, while the core rate that excludes food and energy was up 1.9%

Wednesday’s decision was unanimous 8-0.

Voting members shifted chairs at this meeting, with John Williams voting for the 1st time as New York Fed President and FOMC Vice Chairman, with Kansas City Fed chief Esther George taking his place as an alternate for San Francisco while it seeks a new President.

Wednesday, the major US stock market indexes finished at: DJIA -81.37 at 25333.82, NAS Comp +35.50 at 7707.29, S&P 500 -2.93 at 2813.10

Volume: Trade on the NYSE came in at 792-M/shares exchanged

  • NAS Comp +11.6% YTD
  • Russell 2000 +8.7% YTD
  • S&P 500 +5.2% YTD
  • DJIA +2.5% YTD

HeffX-LTN’s Major US Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
1 August 2018 QQQ 176.9 Neutral (0.24) 174.79 177.38
1 August 2018 DIA 253.31 Neutral (0.23) 250.70 253.86
1 August 2018 SPY 280.94 Bullish (0.32) 280.12 284.15

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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