- Rates unchanged at 4.25-4.50%
- Recent indicators suggest that economic activity has continued to expand at a solid pace
- Highlights that swings in net exports affected GDP data
- Labor market conditions remain solid
- FOMC judges that the risks of higher unemployment and higher inflation have risen
- No dissents
This is a hawkish statement and doesn’t tee up a June cut. The statement highlights something that Powell has been saying: That risks to both sides of the mandate have risen.
It’s a short statement and doesn’t offer much color so we will have to wait for Powell at 2:30 pm ET. The market reaction to the decision has been muted across the board.
This article was written by Adam Button at www.forexlive.com.