Good afternoon, folks. The US Fed announced their decision on interest rates, as well as (more importantly), its statement about the state of affairs. I’ve provided highlights below via bullet points. Don’t mind the lack of form, the meat is what counts.
- Fed Funds Rate decreased by 25 basis points (.25) to 2.0%. Was at 4.25% on Jan 1.
- Little to no reaction to Fed statement. There was no real movement in the US Dollar, Gold, Oil or Equities Markets following the news at 2:15.
- The statement was not as strong as the markets were looking for.
- “Uncertainty about inflation outlook remains high. Seen as moderating but will be monitored carefully.”
- “Fed is still ready to act to provide stability.”
- “Financial Markets are under stress.”
- “Economic activity currently remains weak.”
- “Easing to date should provide growth”
- “Labor markets have suffered”
Regards,
George