FOMC decision: Interest rates unchanged, Fed cites lack of further progress on inflation

  • Prior was 5.25-5.50%
  • QT pace $25 billion vs $60 billion ($30 billion was expected)
  • Economic activity described as ‘continued to expand at a solid pace’ vs ‘expanding at a solid pace’ prior
  • Jobs gains described as ‘have remained strong’ vs ‘have remained strong’ prior
  • Inflation described as ‘remains elevated’ vs ‘remains elevated’ prior
  • Adds line to say ‘In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.’
  • The Committee judges that the risks to achieving its employment and inflation goals have moved toward better balance over the past year

The statement repeated:

The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.

The market was pricing in 30 bps of easing ahead of the FOMC statement. Chairman Jerome Powell will speak in a press conference at 2:30 pm ET.

Redline from ZeroHedge:

This article was written by Adam Button at www.forexlive.com. Source