- Fed leaves rates unchanged, as market had expected
- Hints it will keep rates at current levels through 2023, allow inflation above 2%
- Getting unemployment down seems to be Fed’s focus, and it doesn’t see inflation creeping up
By projecting rates at current levels until 2023, which it did today, the Fed is going out a bit on a limb.
We all know how quickly markets can change, as witnessed early this year. So it remains to be seen if the Fed can come through on that promise. For now, it’s probably somewhat positive news for stocks because it’s even more clear that the Fed plans to remain accommodative for years to come.
The “dot-plot” showing individual Fed officials’ predictions for the rate path going out several years looks like most of them agree on flat rates for the next three years. However, the Fed’s