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Federal Reserve: A material world
After the 25bp rate cuts in July, September and October, Federal Reserve officials had indicated a preference to pause barring “material” changes in the economic outlook. With the latest data flow suggesting that there is little threat of imminent recession, equity markets hitting new highs and the Treasury yield curve having steepened there was next to no prospect of any change to policy this month. That is of course what we have got – a unanimous decision to leave the Fed funds target range at 1.5-1.75%. The accompanying press release removes reference to "uncertainties" around the outlook, says that rates ... (full story)