Fed Leaves Rates Unchanged and Provides No New Signals on the Policy Outlook
​As was widely expected, the FOMC left the fed funds rate unchanged at 0.75%–0.1% today. Although there were more wording changes than we expected in the first paragraph of the Fed’s policy statement, the underlying policy message was unchanged from that given at the last FOMC meeting. We see the Fed as not reacting to the latest data in a way that it might have done last year and we see the Committee as firm in its intention to snug rates higher this year. We still lean to a June rate hike and we think the implied market probability of around 70% is about right given there are two employment reports and two CPI reports to be released before the June policy announcement.
RDQ Economics provides global macroeconomic consulting services with an emphasis on U.S. economic fundamentals and monetary policy.
Our views are driven by consistent application of classical economic and monetary principles and has generated superior anticipation of changes in the stance of monetary policy and of movements in economic growth and inflation.
The founders of RDQ Economics, John Ryding and Conrad DeQuadros, have a combined experience of 26 years on Wall Street, 12 years of experience in central banking at the Federal Reserve and the Bank of England and nine years in the independent research space. John and Conrad have worked closely with fixed income, foreign exchange, and equity traders and portfolio managers, which has enabled their analysis and advice to be tailored to a clientele that is focused on trading and investment decisions.
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