CIBC Research discusses the reaction to today's FOMC decision.
The baby steps continue, with today's Fed rate announcement signaling no hurry to take any giant leaps towards higher interest rates ahead. The 25 bp hike was well-telegraphed, and the accompanying statement offered minimal word changes (mostly edits to take into account that we're past the hurricane impacts).
…Most notable were two big "no" votes from Kashkari and Evans, who aren't convinced that inflation is heating up to warrant the tightening. Forecasts for real GDP were revised up for 2018 (quarterly growth averaging 2.5% vs 2.1% previously), but inflation forecasts unchanged.
Perhaps a shade dovish with the two "no" votes, but not a lot of news vs. what was expected," CIBC argues.
Source: CIBC Economics – CIBC Capital MarketsOriginal Article
