144
Currency Analyst since 2010

USD: statement of the Federal Reserve

Dovish:

-          The Fed will keep interest rates near zero for a “considerable time” after QE ends.

-          Economy is expanding at a moderate pace, while inflation is below the Fed’s goal.

-          There's still “significant underutilization of labor resources”.

Hawkish:

-          QE was reduced to $15 billion a month.

-          “Labor market conditions improved somewhat further”.

-          Median estimate for the federal funds rate at the end of 2015 is raised from 1.125% to 1.375%. The rate will be at 3.75% at the end of 2017 (the Fed has included this year for the first time in its Summary of Economic Projections. 

-          First rate rise seen in 2015 by 14 officials compared with 12 in June.

-          Provided more information on the exit strategy. 

-          Fisher and Plosser dissent on FOMC vote on forward guidance (hawks).

Scroll to top