Key Insights
- Federal Reserve kept the federal funds rate at 5.25% – 5.50%.
- Fed noted that economic activity was strong in the third quarter.
- The initial market reaction shows that traders are no ready for big moves ahead of Powell’s press conference.
On November 1, Fed released its FOMC Statement. The Committee decided to maintain the target range for the federal funds rate at 5.25% – 5.50%, in line with analyst estimates.
Fed noted that job gains have moderated since earlier in the year, but inflation remained elevated. The central bank also noted that economic activity expanded at a strong pace in the third quarter.
All in all, the FOMC Statement contained no surprises. The strong growth of the economic activity in the third quarter provides Fed with a chance to deliver another rate hike this year, but it remains…
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