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Edition 2 February, 2017 - Crédit Agricole S.A.
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  • Edition 2 February, 2017

    FOMC: Policy unchanged. No hints on timing of next hike

    As widely expected, the FOMC left its monetary policy unchanged with the Fed funds rate target range maintained at 0.5% to 0.75% at its February meeting. The Fed's balance sheet reinvestment policies were also unchanged.

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  • Contents:

    - FOMC statement saw limited changes
    - Outlook
    - Housekeeping details
    - Changes to the policy statement

  • Extract:

    Inter-meeting economic data pointed to an ongoing moderate economic expansion with solid job gains. That supports the Fed's expectations of a gradual withdraw of monetary support, but the February statement offered no hints as to when to expect the next rate hike.
    Inflation still remained below the 2% longer-run objective, although it has increased in recent quarters. The Fed sees inflation rising to 2% over the medium term.
    The US economy began the year on solid economic footing, in our view. However, the uncertainty over the timing, magnitude and composition of the fiscal policies of the Trump Administration provided a good reason for Fed policymakers to bide their time in February and avoid telegraphing any potential time frame for the next rate hike.

  • Associative topics : Economics | North America

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