FOMC: "Be patient" formulation suggesting the possibility of rate cuts-Bloomberg



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The Federal Open Market Committee (FOMC) closed its regular meeting in 18 and 19 days, and deferred the federal fund interest rate (FF) in the range of 2.25-2.50%. He pointed to "uncertainty" in the outlook and indicated he was prepared to cut rates.

From the statement released after the meeting, the text "become patient" in the judgment of the policy rate has been removed. The official forecast announced that inflation during the year would be well below the 2% target of the authorities. President Powell of the Federal Reserve has been repeatedly urged by President Trump to cut rates to boost the economy.

A statement said that the inflation trend around the target and the strong job market was the most likely outcome, but "uncertainty about the outlook has increased." "Given these uncertainties and moderate inflationary pressure, the Commission will keep an eye on what future information on the economic outlook may suggest, accompanying economic expansion, a strong labor market and inflation close to the 2% symmetric target. act correctly toward

This political decision was not unanimous. St. Louis Fed chairman Brad called for a 0.25-point cut and voted against. This is the first time an opposition vote has been launched at the FOMC meeting under Powell's presidency.

There were divergent opinions among the authorities on the future policy path. According to the economic forecast of the FOMC participants updated quarterly, 8 of 17 should reduce interest rates by the end of the year. On the other hand, the other eight left him undecided, and the rest expected to raise rates.

In the statement, the expansion of economic activity was revised downwards from the previous "steady pace" and the "slow pace". He added, "The growth in household spending seems to have recovered since the beginning of this year," although he pointed out that the index on corporate equity investment is "weak."

Original title:Fed Scraps & Patient & # 39; Prelude Rate Approach for Potential Cut (Excerpt)

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