FOMC Meeting: January 28th-29th

Considering the absence of material changes over the intermeeting period, the Fed left target range of federal funds rate unchanged at 1.5-1.75%.

Key points

• Key points:
• The Fed made a “technical” adjustment and increased the interest paid on excess reserves (IOER) by 5bp to 1.6%, which is 10bp above the lower end of the range
• We continue to believe that the Fed will remain on hold throughout 2020 given the more upbeat outlook, lower uncertainty and diminished global risks, amid muted inflationary pressures

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