Central Banks

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The Federal Reserve as expected kept rates at at 1.50%-1.75%, as expected after a two day meeting on Wednesday with Jerome Powell as Chairman. Markets had priced in a 97% chance of No Change. Leaves forecasts for GDP and inflation unchanged, lowers unemployment.

 Fed Boardroom

Federal Reserve December FOMC Meeting 

Federal Reserve Announcement Wed 29 January 2020 14:00:00 ET

FOMC Benchmark Interest Rate Unchanged Target Range To 1.50-1.75%

Interest Rate On Excess Reserves 1.55% 

FOMC Statement and Press Conference January 29, 2020 14:30 ET


  • The decision is unanimous
  • Fed says labor market stronger, economy rising at moderate rate
  • Consumption moderate, investment and exports weak
  • job gains solid, unemployment has remained a low overall and core inflation running below 2%
  • Market-based gauges of inflation compensation remain low
  • Aims for inflation returning to symmetric 2% goal
  • Reiterates plan to buy treasury bills into 2nd half of 2020
  • Continue conducting overnight repo operations at least through April
  • Survey based inflation expectations a little changed
  • Current policy appropriate to sustain expansion
  • Will continue to monitor incoming data including Global developments in muted inflation pressures

Jamuary 29, 2020 Federal Reserve issues FOMC statement

For release at 2:00 p.m.EDT

The full FOMC statement for January 2020

Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a moderate pace, business fixed investment and exports remain weak. On a 12‑month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1‑1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michelle W. Bowman; Lael Brainard; Richard H. Clarida; Patrick Harker; Robert S. Kaplan; Neel Kashkari; Loretta J. Mester; and Randal K. Quarles. Implementation Note issued January 29, 2020


Federal Reserve December FOMC Statement Changes via RANsquawk @RANsquawk






Source: Federal Reserve

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