The Fed hiked rates a quarter point to a range of 2.00% to 2.25%. Here is the FOMC Statement.

Information received since the Federal Open Market Committee met in August indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. Household spending and business fixed investment have grown strongly. On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced.

In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 2 to 2-1/4 percent.

Dot Plot

Image placeholder title

RECOMMENDED ARTICLES

The Dot Plot, a measure of future rate projections, shows a near-term likelihood of another hike this year followed by increasing uncertainty.

One participant thinks the Fed is done hiking. Another thinks the Fed will hike to over 4.0% percent by 2021.

Recession When?

Judging from the plots, it appears at least some of the participants are penciling in a recession in 2021. I would be extremely surprised if we go that long.

Mike "Mish" Shedlock

Fed Cuts Rates 1/4 Percent, Three Dissents: Dot Plot Suggests No More 2019 Cuts

The Fed cut interest rates 25 basis point to a target of 1.75% to 2.00%. There were three dissents.

Dot Plot Shows 3 Hikes in 2018: Fade the Consensus

The Fed hiked 1/4 point with no unexpected discussion. A Dot plot shows Fed participants believe 3 more hikes are coming

Fed Hikes as Expected, Dot Plot of Expected Hikes Changes Significantly

The Fed did little this month but babble the same story about strong jobs and its dual mandate. Expectations did change.

Dot Plot Fantasyland Flashback vs Current Rate Cut Expectations

In December, Powell said the Fed was on "autopilot". Let's compare those dot plots with current Fed Fund Futures.

Belief in Inflation (And 4 or More Rate Hikes in 2018) Picks Up

Investors Increasingly believe the Fed may hike four or more times in 2018. The inflation scare is picking up steam.

Dot Plot Fantasyland Projections

The Economic projections made at today's FOMC meeting are straight from Fantasyland

Fed Hikes, Issues Boilerplate Statement With One Surprise; Dot Plot Spotlight Analysis

The Fed hiked today, first quarter weakness aside and second quarter weakness aside. There was one dissent.

Market Gives Finger Formation to Fed's Dot Plot Take

The Median Fed projection at the Dec FOMC meeting was 2 more hikes in 2019. In September it was 3. Hikes now priced out.

Fed Hikes Again, Modifies Accommodation Language, Plans on 2 More Hikes in 2018

The Fed hiked rates to a range of 1.75% to 2.00% as unanimously expected.