Powell Now a Fully-Trained Puppy Happy to Please Master Market

-edited

The Fed will be patient. Gradual increases went out the window. Gee who coulda thunk?

The Fed did not hike today as expected. Investors hoped for the the word patient and the FOMC Statement said just that.

"Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes."

Statement Tracker

The WSJ's Statement Tracker highlights the changes since the December statement.

As expected.

Fed Chair Jerome Powell is now a fully-trained puppy happy to please master market.

Mike "Mish" Shedlock

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Comments (21)
No. 1-20
Sechel
Sechel

The Fed always acts this way. On the interest rate front I don't see Powell acting any differently than Yellen might have.

Mish
Mish

Editor

Nearly everyone expected Powell to be different - He wasn't

WCVarones
WCVarones

Bring out the Gimp!

Bam_Man
Bam_Man

Powell claims "everything is awesome", yet capitulates on rates and balance sheet run-off. God only knows how EXTREME the Fed's panic response will be when recession actually hits. Better get your hands on some Gold now, my friends.

Realist
Realist

Completely predictable.