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Fed downplays drop off in core inflation

Although the FOMC left the target for the fed funds rate unchanged at between 2.25% and 2.50% today, as expected, it unveiled a slightly unexpected 5bp cut in the interest on excess reserves (IOER) rate. As Fed Chair Jerome Powell explained in his press conference, however, that cut was a “small technical adjustment”  and does not represent a loosening of the policy stance.

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