The Federal Open Market Committee (FOMC) maintained the federal funds rate as expected. Additionally, no action was taken at this meeting to reduce the Federal Reserves’ balance sheet.
…. For the time being, the Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee expects to begin implementing its balance sheet normalization program relatively soon, provided that the economy evolves broadly as anticipated ….
Analyst Opinion of the FOMC Meeting Minutes
Not much can be added as this outcome was generally expected. The FOMC must have been tempted to begin unwinding its balance sheet – but the economy was not cooperating?
The Federal Funds rate was unchanged at 1 to 1-1/4 percent. Bloomberg / Econoday forecast was for no rate increase.
