Projection Materials (aka "dots")
- FED POLICYMAKERS CONTINUE TO SEE NO RATE HIKES THROUGH 2023: MEDIAN FORECAST IN SUMMARY OF ECONOMIC PROJECTIONS
- FED'S MEDIAN VIEW OF FED FUNDS RATE AT END-2023 0.1% (PREV 0.1%)
- FED'S MEDIAN VIEW OF FED FUNDS RATE IN LONGER RUN 2.5% (PREV 2.5%)
- FOUR FED POLICYMAKERS SEE LIFTOFF IN FED FUNDS RATE FROM ZERO IN 2022, SEVEN SEE LIFTOFF IN 2023
- FED SEES U.S GDP GROWING 6.5% IN 2021 (PREV 4.2%), 3.3% IN 2022, 2.2% IN 2023; MEDIAN LONG-RUN FORECAST AT 1.8% (PREV 1.8%)
- FED SEES YEAR-END U.S. JOBLESS RATE AT 4.5% IN 2021, 3.9% IN 2022, 3.5% IN 2023; MEDIAN LONG-RUN FORECAST AT 4.0% (PREV 4.1%)
- FED SEES PCE INFLATION AT 2.4% IN 2021, 2.0% IN 2022, 2.1% IN 2023
- MAJORITY OF FED POLICYMAKERS SEE RISKS TO INFLATION FORECASTS ‘WEIGHTED TO THE UPSIDE,’ VS MAJORITY SEEING DOWNSIDE RISK IN DEC. SEP
Policy Statement
First off, you're better off just reading this commentary piece. The bullets are info overload, and very little changed.
- FED LEAVES KEY OVERNIGHT INTEREST RATE UNCHANGED AT 0-0.25%, SAYS COMMITTED TO USING FULL RANGE OF TOOLS TO SUPPORT ECONOMY
- FED WILL CONTINUE TO INCREASE BOND PURCHASES BY AT LEAST $80 BLN/MONTH OF TREASURIES AND $40 BLN/MONTH OF MBS UNTIL 'SUBSTANTIAL FURTHER PROGRESS' MADE ON MAXIMUM EMPLOYMENT AND PRICE STABILITY GOALS
- FED VOTE IN FAVOR OF POLICY WAS UNANIMOUS
- FED REPEATS TO MAINTAIN CURRENT FED FUNDS RATE UNTIL LABOR MARKET HAS REACHED MAXIMUM EMPLOYMENT AND INFLATION HAS RISEN TO 2% AND IS ON TRACK TO EXCEED THAT FOR SOME TIME
- FED REPEATS TO MAINTAIN ACCOMMODATIVE POLICY UNTIL INFLATION RUNS MODERATELY ABOVE 2% FOR SOME TIME, SO THAT INFLATION AVERAGES 2% OVER TIME AND LONGER-TERM INFLATION EXPECTATIONS REMAIN WELL-ANCHORED AT 2%
- FED REPEATS IT WOULD BE PREPARED TO ADJUST MONETARY POLICY STANCE AS APPROPRIATE IF RISKS EMERGE THAT COULD IMPEDE ATTAINMENT OF FED’S GOALS
- FED SAYS INDICATORS OF ECONOMIC ACTIVITY AND EMPLOYMENT HAVE TURNED UP RECENTLY FOLLOWING A MODERATION IN THE PACE OF THE RECOVERY
- FED SAYS INFLATION CONTINUES TO RUN BELOW 2 PERCENT
- FED SAYS OVERALL FINANCIAL CONDITIONS REMAIN ACCOMMODATIVE, REFLECTING MEASURES TO SUPPORT THE ECONOMY AND THE FLOW OF CREDIT TO U.S. HOUSEHOLDS AND BUSINESSES
- FED SAYS SECTORS MOST ADVERSELY AFFECTED BY THE PANDEMIC REMAIN WEAK
- FED REPEATS PATH OF ECONOMY WILL DEPEND SIGNIFICANTLY ON COURSE OF VIRUS, INCLUDING PROGRESS ON VACCINATIONS
- FED REPEATS PUBLIC HEALTH CRISIS CONTINUES TO WEIGH ON ECONOMIC ACTIVITY, POSES CONSIDERABLE RISKS TO OUTLOOK
- FED SAYS WILL CONDUCT OVERNIGHT REVERSE REPURCHASE AGREEMENT WITH A PER-COUNTERPARTY LIMIT OF $80 BILLION PER DAY, EFFECTIVE MARCH 18, 2021
- FED SAYS INCREASE IN THE PER-COUNTERPARTY LIMIT FOR ON RRP FROM $30 BILLION PER DAY REFLECTS EVOLUTION OF U.S. DOLLAR FUNDING MARKETS AND HELPS ENSURE THE FACILITY SUPPORTS EFFECTIVE POLICY IMPLEMENTATION
- FED SAYS ALL OTHER TERMS OF ON RRP OPERATIONS REMAIN THE SAME
- NEW YORK FED SAYS WILL NO LONGER CONDUCT REGULAR CMBS PURCHASE OPERATIONS AFTER END OF CURRENT SCHEDULE ON MARCH 23
