Today the Fed pledged patience and a majority of officials signaled they might not raise the rate at all this year.
Statement Tracker
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The above image from the Wall Street Journal Statement Tracker.
#Fed Chairman Powell has used the word "patient" three times so far, and we're only 4 minutes into his press conference.
— Harriet Torry (@HarrietTorry) March 20, 2019
BREAKING: Fed now predicts ZERO rate hikes in 2019 (and only 1 in 2020).
— Heather Long (@byHeatherLong) March 20, 2019
Today the Fed:
-Cut its 2019 GDP forecast to 2.1% (down from 2.3%)
-Cut its 2019 rate hikes to 0 (down from 2)
-Said it will end balance sheet runoff in September (and start slowing in May)#Fed #economy
Bond yields collapse. I will have some charts in just a bit. The statement revisions are substantial, but not massive. The Dot Plot change was massive.
Dot Plot December 2018
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That's quite a change. Note in particular the Fantasyland projections for 2020 and 2021.
Powell: 'A Great Time for Us to Be Patient'
Fed Chairman Jerome Powell has already fielded a series of questions trying to pin him down on whether, and in which direction, the Fed is inclined to adjust policy. But he's clearly not planning to provide much guidance on that question today.
"Data we’re seeing are not currently sending a signal," of needing to move in either direction. It's "a great time for us to be patient," Mr. Powell said.
The above from Federal Reserve Interest-Rate Decision—Live Analysis.
Inversions are now massive. Some charts coming up shortly.
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