Fed Ups Economy from Solid to Strong

Let's dive into the FOMC Statement for clues and actions.

Information received since the Federal Open Market Committee met in June 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

RECOMMENDED ARTICLES

In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-3/4 to 2 percent. The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.

Words Strong, Action Weak

The Fed elected to hold interest rate at 1-3/4 to 2 percent.

Mike "Mish" Shedlock

Fed Hikes 1/4 Point as Expected: Dot Plot Indicates One More 2018 Hike Coming

In its FOMC statement, the Fed says the economy continues to strengthen, unemployment is low, and spending is strong.

Ben Bernanke Just Won't Stop Making a Fool Out of Himself

Former Fed Chair Ben Bernanke is back in action doing what he does best, making a fool out of himself.

Fed Minutes Suggest Gradual Rate Hikes Coming: Little Market Reaction

As expected, the Fed signaled gradual rate hikes are coming.

March Rate Hike Odds Surge to 80 Percent: New Standard for “Surprisingly Strong” Economy

Rate hike odds surged as high as 80% following comments today from two Fed presidents. The odds are 62% as I am typing now. Let’s investigate the spike.

Fed Eyes Long Pause, No Rate Hikes in 2020

The Fed held rates steady today citing low inflation. Members expect a long pause.

Trump Blasts Powell on Rate Hikes, QT, and the Strong Dollar at CPAC 2019

Speaking during the CPAC 2019 conference on Saturday, Trump blasted Fed Chair Jerome Powell on three fronts.

Tech Boom Downside: Not Enough Jobs?

The Wall Street Journal says there is a “great unraveling” to America’s Dazzling Tech Boom: Not Enough Jobs. Let’s investigate.

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.

Beige Book Shows Slight-to-Moderate Growth: Words of the Day "Shutdown, Weather"

10 Districts report slight-to-moderate growth. Two districts report flat economic conditions.