1. Monthly bond purchases cut by $10B to $35B
  2. Fed sees slightly higher Fed Funds rate in 2015 (1.2% vs. 1.125% in March)
  3. Majority expect first rate hike in 2015
  4. Nearly all of the changes in the FOMC statement was in the first paragraph description of economy
  5. No Dissents – All new members vote in line with majority
  6. Policy remains accommodative, Fed repeats low rates likely
  7. Fed notes rebound in economic activity and improvement in labor market
  8. Unemployment rate though lower, remains elevated
  9. Household spending appears to be rising more quickly, business investment resumed its advance
  10. Forecast changes – lower unemployment rate, higher inflation and significantly weaker growth
a. 2014 Unemployment forecast cut to 6%-6.1% vs. 6.1%-6.3% in March b. 2014 Inflation forecast raised to 1.5%-1.7% vs. 1.5%-1.6% in March c. 2014 GDP growth cut to 2.1%-2.3% from 2.8%-3% in March
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