The Federal Open Market Committee voted 9-3 to hold the benchmark federal funds rate in a range of 3.5% to 3.75%, with three officials dissenting in favor of raising rates. The committee repeated their pledge to “deliver price stability” and officials will get fresh inflation data Thursday, amid mounting pressure and uncertainty around the Iranian conflict and inflation.
NDX rose +0.3% following the decision, two-year bond yields fell from 4.32% to 4.26%, and odds of a Sept rate hike dropped to 75% from 95%before the decision. This decision shouldn’t change investors’ perception of future monetary policy, with a single word change in the entire statement. Everything about today’s announcement speaks patience. Below is what changed in today’s Fed statement vs the June 17 statement.Fed Chair Warsh’s press conference starts at 230pm ET.
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