Interested parties may wish to bore themselves reading the Fed's May 2, FOMC Policy Statement

Boilerplate Statement

"In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation."

My Interpretation

  • Since the market expected the Fed not to hike, the Fed did not hike.
  • Since the market expects the Fed to hike in June, the Fed (wanting to hike), issued statements supportive of a hike in June.

Essentially, the Fed did nothing and said nothing, exactly as expected in this corner.

Mike "Mish" Shedlock

Fed Cites "Strong Economic Activity", Then Does Nothing

As expected, the Fed did nothing at today's FOMC meeting. A hike is on the way in December.

Fed Holds Rates Steady, Says Almost Nothing

The Fed held its baseline rate at 150 to 175 basis points. It also made two tiny changes in its statement.

Fed Did Nothing, Said Little: VIX Back Below 10, Yield Curve Flattens a Bit, Silver Jumps

The Fed upgraded its assessment of the economy from moderate to solid but held off on further rate hikes. Baby steps will continue in December. The market prices in a 97.7% chance of a quarter point hike next month.

Laughable FOMC Statements on Phillips Curve, Inflation Expectations

The Jan 30-31 FOMC minutes were published today. In addition to the usual drivel came laughable Phillips Curve nonsense.

FOMC Holds Rates, Mush “Transitory” Statement Follows: Interesting Bond Reaction

As universally expected, the Fed did not hike rates at the May meeting. Instead, the FOMC committee issued a boilerplate Press Release that the first quarter slowdown is transitory and that inflation expectations are balanced.

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.

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.

Rate Cut Odds Shrink Dramatically Following FOMC Decision

The odds the Fed Funds Rate would be 1.75% to 2.00% fell from 54.2% yesterday to 0% today.

Fed Does Another Emergency Repo and Relaunches Commercial Paper Facility

The Fed keeps trying things hoping that something will stick.