The Fed keeps interest rates unchanged at 2.50%, as expected.

The Fed keeps interest rates unchanged at 2.50%, as expected.

FED SAYS IT'S PREPARED TO ADJUST BALANCE-SHEET NORMALIZATION

FED HOLDS RATES, PLEDGES `PATIENT' STANCE ON FUTURE MOVES

Fed keeps target interest rate at 2.25-2.50 pct, says will be patient as it determines what future adjustments to rates might be appropriate.

Will continue to unwind balance sheet by forgoing reinvestment of up to $50 bln in maturing securities each month.

Prepared to adjust any details for completing balance sheet normalization in light of economic and financial developments.

Intends to continue implementing policy in which ample reserves ensures monetary control is primarily exercised through setting of Fed's administered rates and active management of reserves is not required.

Sustained expansion of economic activity, strong labor market and inflation near target are the most likely outcomes.

Statement drops language used in prior statement that had said committee judged some further gradual increases in Fed funds rate would be appropriate.

Fed statement drops language used in prior statement that had said risks to the economic outlook were roughly balanced.

Patience on rates is in light of global economic and financial developments and muted inflation pressures.

Economic activity rising at a solid rate.

Market-based measures of inflation compensation have moved lower but survey-based measures of inflation expectations are little changed.

Prepared to use full range of tools, including altering size and composition of its balance sheet, if more monetary accommodation were needed than could be achieved with rate cuts.

Fed vote in favor of policy was unanimous.

30 Jan 19 (Wed)

07:02 pm



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