- The FOMC voted not to change interest rates at this meeting. Though the path of expected rate increases as measured by the ‘dots plot’ came down considerably.
- The Fed’s economic projections for economic growth and inflation were also lowered for 2016.
- The statement contained some small adjustments to the language, including now describing the economic recovery as growing at a “moderate pace despite the global economic and financial developments of recent months.” The previous statement read “economic growth slowed late last year.”
- The so-called ‘balance of risks’ statement was eliminated, but it was replaced with “global economic and financial developments continue to pose risks.”
- It continues to reinvest maturing principal payments to maintain the size of its balance sheet.
- There was one dissenting voter, “Esther L. George, who preferred at this meeting to raise the target range for the federal funds rate to 1/2 to 3/4 percent.”
For a copy of this report or to subscribe to the Economics Weekly or Economic Indicators reports, please contact your William Blair representative.
Richard de Chazal, CFA is a London-based macroeconomist covering the U.S. economy and financial markets.