September 25-26 FOMC Meeting: Main Takeaways

Key points: In line with expectations , the Fed increased the target range of the fed funds rate by 25 bps to 2 . 00 - 2. 25 %. T he median of the dots remained unchanged in 2018 , therefore suggesting that another hike is very likely in December. Member’s projections for 2019 remained consistent with three additional rate hikes next year. Meanwhile, the wording of the statement remained upbeat but the Fed removed the sentence characterizing monetary policy as “ accommodative ” . All in all , today’s information including the Chairman Powell’s remarks continue to suggest that the Fed will keep the gradual tightening plan in place.