US FOMC raises interest rates to 2.00% – 2.25% at September 2018 meeting

Highlights of the September 2018 US Fed FOMC monetary policy meeting 26 September 2018

Prior 1.75% – 2.00%
RAISES TARGET INTEREST RATE TO 2-2.25 PCT, SEES ONE MORE RATE HIKE THIS YEAR AND THREE IN 2019
REMOVES FROM STATEMENT DESCRIPTION OF MONETARY POLICY AS REMAINING ACCOMMODATIVE
SEES FASTER ECONOMIC GROWTH THIS YEAR AND SLIGHTLY FASTER GROWTH NEXT YEAR IN NEW ECONOMIC PROJECTIONS COMPARED WITH JUNE PROJECTIONS
SEES SLIGHTLY LOWER PCE INFLATION IN 2019 COMPARED WITH PRIOR PROJECTIONS; PROJECTIONS FOR 2019 CORE PCE AND 2019 UNEMPLOYMENT RATE UNCHANGED
IN STATEMENT DOES NOT CHANGE DESCRIPTION OF ECONOMY; REPEATS THAT JOBS GAINS HAVE BEEN STRONG AND HOUSEHOLD SPENDING AND BUSINESS FIXED INVESTMENT HAVE GROWN STRONGLY
REPEATS EXPECTS FURTHER GRADUAL INCREASES IN FED FUNDS RATE WILL BE CONSISTENT WITH SUSTAINED ECONOMIC EXPANSION, STRONG JOBS MARKET AND INFLATION OBJECTIVE
REPEATS RISKS TO THE ECONOMY APPEAR “ROUGHLY BALANCED”
SETS INTEREST RATE PAID ON EXCESS RESERVES AT 2.20 PERCENT, KEEPING IT 5 BASIS POINTS BELOW TOP OF FED FUNDS TARGET RANGE
VOTE IN FAVOR OF POLICY WAS UNANIMOUS

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