Goldman’s FOMC Postmortem: “Faster Pace Of Hikes Reflects An Economy Close To Full Employment”

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies

While Yellen is still speaking, here is Goldman’s assessment of what the FOMC meant with its statement:
BOTTOM LINE: The FOMC raised the funds rate target range, as widely expected. In the accompanying projection materials, the median estimate of rate hikes for 2017 increased, and now shows three hikes for the year instead of two. The statement said that the committee aims to see only “some” further improvement in labor market conditions.
MAIN POINTS:
1. The FOMC announced an increase in the target rate for the federal funds rate to 0.50-0.75% from 0.25-0.50%, as widely expected. The post-meeting statement indicated that an increase was warranted due to ‘realized and expected labor market conditions and inflation’.

This post was published at Zero Hedge on Dec 14, 2016.