The Fed Makes a Difference

  • A unanimous vote left the target range unchanged at 1.00% to 1.25%.
  • The Fed said it will start its balance sheet normalization process in October as laid out in the June 2017 Addendum to the Committee’s Policy Normalization Principles and Plans
  • 12 of the 16 Fed members still project one more hike in 2017
  • 11 of the 16 Fed members project three rate hikes in 2018
  • The economic effects of the hurricanes are transitory and unlikely to materially alter the course of the national economy over the medium term
  • There was little change in the central tendency economic projections, although it is worth noting that the real GDP growth outlook for 2017 was revised slightly higher while the PCE inflation outlook was revised slightly lower
  • The median longer run fed funds rate — the so-called neutral rate — was reduced from 3.00% to 2.8% (this was an acknowledgement that the world has changed and that inflation may stay low for a very long time)

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ANG Traders

ANG Traders

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Forty years of private equity trading, and still learning.