FOMC leaves rates steady at 2.25 to 2.50
1) Downgrades economy. GDP now 2.1 vs 2.4. Unemployment 2.3 vs 2.1 Inflation 1.8 vs 1.9
2) Balance sheet runoff ends in November
3) Now forecasting 0 hikes in 2019 from 2. 20-21 sees 1 rate hike.
Fed is coming down to the market.
Market is jumping upside on the news. Now we go through the post-FOMC volatility, but this is a pretty darn dovish statement.
Tapering balance sheet in May and finish by Nov/December, reinvesting in treasuries (that keeps rates lower).
SP500 0.40, 0.01%
NASDAQ 17.57, 0.25%
DJ30 -20.36, -0.12%
SP400 -0.30%
RUTX -0.67%
SOX -0.52%
NASDAQ 100 0.52%
______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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