- The FOMC voted not to change interest rates at this meeting. Though the expected rate of interest measured by in the ‘dots plot’ came down across the board.
- The Fed’s economic projections for growth and inflation were lowered for 2016, but unchanged for 2017, 2018, and the longer run.
- The statement described the economic recovery as having “picked up from the modest pace seen in the first half of this year.”
- The committee now sees “near-term risks to the economic outlook appear roughly balanced.”
- It continues to reinvest maturing principal payments to maintain the size of its balance sheet.
- There were three dissenting voters—“Esther L. George, Loretta J. Mester, and Eric Rosengren, each of whom preferred at this meeting to raise the target range for the federal funds rate to 1/2 to 3/4 percent.”
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Richard de Chazal, CFA is a London-based macroeconomist covering the U.S. economy and financial markets.