FED Monetary Policy

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Fed kept interest rates unchanged, said inflation remains somewhat elevated

  • Fed kept its key interest rate unchanged at a range of between 4.25%-4.5%, as was widely anticipated.
  • However, the post-statement said “inflation remains somewhat elevated” versus their previous statement which said inflation had made progress towards their 2% goal.
  • The committee now says unemployment rate has stabilized at a low level versus their previous statement which had noted an increase in the unemployment rate and easing of labor market conditions.
  • S&P 500 futures shed 0.8%, Nasdaq composite lost 1.1% while Dow Jones futures declined 0.4% briefly following the report.
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