The change to the FOMC’s policy statement, acknowledging the recent solid pace of GDP growth and stabilisation in the unemployment rate, is another sign that the Fed is unlikely to cut interest rates again for at least a couple more meetings. Nonetheless, the two dissenting votes in favour of a 25bp cut from Governors Stephen Miran and Christopher Waller as well as comments from Chair Jerome Powell in the press conference suggest that the Fed’s bias is still toward additional loosening.
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