FOMC latest publications
The June 9-10 FOMC meeting statement provided a very dovish perspective on the economy. It reinforced the severe damage from Covid-19 to both economic activity and the labor market.
April’s FOMC statement, released today, confirms that the Federal Reserve (Fed) will continue with its aggressive strategy to deal with the economic fallout and downside risks.
In an unscheduled and abbreviated statement, the Fed announced an emergency 50bp cut to 1-1.25% in the Fed Funds rate, similar to the response to 9/11.
As we expected, the Fed lefts its benchmark interest rate by unchanged at 1.5-1.75% and made only minor adjustments to the October statement.
For the third time this year, the Fed lowered the target range of federal funds rate 25bp to 1.5-1.75% without significant changes to their outlook on the labor market or inflation.
Repo Rates: Rates stabilize as average daily intervention inches up to $84bn during the week. Fed recalibrates intervention: daily up to $120bn from $75bn and term up to $45bn from $35bn.
Repo Rates: Rates trended higher but pressures receded after increased intervention. Fed Open Market Operations: Average daily intervention jumped to $81bn during the week; Repo operations will continue at least through January.
Repo Market: No major spikes in rates. Average daily intervention since 9/17 jumps to $65bn; Fed commits to overnight repo operations at least through January 2020; Several FOMC members suggest introducing standing repo facility.