The FOMC left the target range for Federal Funds at 0.25% – 0.50%. Market implied odds of a rate hike stood at 22% prior to today’s release. More Fed watchers anticipate a move at the December meeting. Economic data, speeches by members of the FOMC, and the behavior of other major central banks all suggest a gradual move toward higher short-term rates in the coming months. The Fed’s press release did little to change those short-term expectations, but the committee’s longer-term projections were lowered once again and appeared to have a greater influence over market reactions.
Following is a summary of the Federal Reserve’s press release.