Fed: Baby Steps Continue With A Shade Of Dovish Tone On 2 ‘Big ‘No’ – CIBC

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The Federal Reserve raised rates as widely expected and left the dot plot unchanged. It made its efforts not to rock the boat. But things are never too stable. What’s next?

Here is their view, courtesy of eFXnews:

CIBC Research discusses the reaction to today’s FOMC decision.

The baby steps continue, with today’s Fed rate announcement signaling no hurry to take any giant leaps towards higher interest rates ahead. The 25 bp hike was well-telegraphed, and the accompanying statement offered minimal word changes (mostly edits to take into account that we’re past the hurricane impacts).

…Most notable were two big “no” votes from Kashkari and Evans, who aren’t convinced that inflation is heating up to warrant the tightening. Forecasts for real GDP were revised up for 2018 (quarterly growth averaging 2.5% vs 2.1% previously), but inflation forecasts unchanged.

Perhaps a shade dovish with the two “no” votes, but not a lot of news vs. what was expected,” CIBC argues.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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