Analysts at Goldman Sachs offer their afterthoughts on the Federal Reserve’s (FOMC) December monetary policy decision announced in the US last session.
Key Quotes:
“FOMC raised the funds rate target range to 2 ¼% -2 ½%, as widely expected.
Median dot in the Summary of Economic Projections now shows a 2-1 baseline for rate hikes in 2019-2020, compared to 3-1 in September.
But the average dot declined significantly, a dovish surprise suggesting broad endorsement of the new baseline.
Changes to the post-meeting statement were generally dovish as well.
While the growth characterization was more upbeat than we had expected, the policy guidance was a bit more dovish than we had expected.”
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