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FOMC says What it Had To, No More or Less
The Federal Reserve met market expectations fully. It upgraded its assessment of the economy, recognized that the near-term risks had diminished, and remained committed to normalizing monetary policy. There was one dissent from the steady stance, and it the KC Fed President had already tipped her hand. There was little direct guidance about the September meeting or whether most Fed officials still saw two hikes this year, as they seemed to last month. This is not particularly surprising, and reading between the lines, a single hike this year is the most likely scenario. Besides upgrading the economic assessment and ... (full story)