Yesterday’s Federal Reserve Open Market Committee (FOMC) policy meeting provided few surprises, very gently guiding the market towards a possible September rate hike barring any major surprises in the economic data and outlook. This was broadly in line with expectations and my forecast that the FOMC would deliver a dose of boring to a market that had been on tenterhooks (Fed says it best when it says nothing at all, 17 June 2015).

The FOMC kept its policy rate unchanged at 0-25bp, made only minute changes to its inflation and unemployment forecasts, and while it again slightly lowered its appropriate policy rate targets for 2015-2017 the FOMC members showed a greater degree of uniformity in their target rates.

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