Perhaps the most uninteresting FOMC meeting ever. They did nothing, as expected.
And the new Fed dot plot reveals that The Fed is likely to keep their target rate at near zero through 2023.
Inflation expectations rose after Powell’s speech.
After today’s Atlanta Fed GDPNow real time tracker of 31.68%, it is surprising that the FOMC didn’t raise rates just a little.
Then again, the Rudebusch specification of the Taylor Rule model is calling for a Fed Funds Target Rate of -1.88%.
Of course, there is always the risk that state governors will keep the economy locked-down at least until the election. So we are stuck with 0.25% Snake Juice (aka, Powell Punch).
Update: Well, The Fed’s “good news” that rates will stay near zero for several years wore off quickly.
