The Fed signals no rate hike this year with one increase in 2020, saying it will leave rates unchanged, because economic growth has slowed.
Additional notes from today’s minutes, the Fed says:
- It will taper balance-sheet roll off, sees it halting end-sept. Fed sees slower household spending, business investment.
- Economic growth has slowed from solid 4q.
- Core inflation remains near 2%
Markets seemed to be caught be surprise by the Feds long-term outlook…The price of Gold rallied from $1,302 to $1,318 on the news.
The Dow Industrial average reverses on the news and rallies almost 200 point to the up side. Ten-year Treasuries trading earlier this morning at 2.6 percent now after the news trading at 2.53 percent.
Enjoy the rest of your day.
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