The Fed kept policy rates unchanged for the fifth consecutive meeting, as completely expected, with the target range for the fed funds rate at 5.25%-to-5.50%. Overall, the policy statement was identical to the previous one except the mention of job growth as having “moderated” was removed; it’s now just “strong”. Importantly (and as anticipated), the forward guidance (changed at the last meeting) was repeated. Recall: “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.” In the presser Chair Powell said the inflation data for January and, so far, for February, didn't “boost” confidence.
FOMC Policy Announcement and SEP – Rate Cuts Coming, But Maybe Not Soon
