Key Takeaways From Fed’s Decision to Leave Rates Unchanged
- Federal Open Market Committee votes unanimously to leave benchmark rate unchanged for a second straight meeting -- as expected -- in a target range of 5.25%-5.5%, a 22-year high
- Fed leaves door open to another hike by repeating prior language on “determining the extent of additional policy firming that may be appropriate”
- FOMC flags “tighter financial and credit conditions” as likely to weigh on economy, after previously mentioning only “tighter credit conditions”; language could be seen as suggesting that the recent jump in long-term Treasury yields reduces the impetus for Fed to raise rates again
- Statement says economy expanded at “strong pace in third quarter,” compared with prior description of recent “solid pace”; Fed says job gains “have moderated since earlier in the year but remain strong,” after previously saying that hiring had slowed in recent months
- Decision is unanimous 12-0
(Bloomberg) -- For Bloomberg's TOPLive blog on the Fed decision and press conference, click here
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--With assistance from Jonnelle Marte.
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