Highlights of the June 10, 2020 FOMC interest rate decision
- Will increase holdings of bonds ‘over the coming months’ at least at the current pace to smooth markets
- Buying will continue across curve
- Dots pin rates at zero through 2022 but two dots show lift-off in 2022
- Rates unchanged, as expected
- Repeats pledge to use full range of tools to support US economy
- Repeats that health crisis will weigh heavily on activity and poses considerable risks to the outlook over medium-term
- Financial conditions have improved, in part reflecting policy measures to support the economy and the flow of credit to U.S. households and businesses.
- Prior statement
- Powell will hold a press conference at the bottom of the hour
The Fed has tapered to $4B/day from a high of $300B/day and there was some expectations they would continue to taper but they are going to keep QE here, which is around $80B per month.
I don’t see anything negative for the market here. The dots are zeroed out and the Fed is going to keep the printer running.