Five officials believe the federal fun rate should be at same rate. Five would like to see the rate at level it was before this meeting today. Now the Federal Reserve raises the gdp forecast to 2. 2 this year. Also see the Unemployment Rate nudging up to 3. 7 by the end of the year. Core inflation they do believe stays the sail at 1. 8 by the end. Year. In the statement everything was basically the same there except they added the fixed Business Investment and exports have weakened, changing from soft, Federal Reserve says they will act as appropriate to stay in expansion. Now on the shortterm funding costs that you were talking about, charles, the Federal Reserve lowered interest on excess reserves. Lowered interest on excess reserves by 30 basis points. The Federal Reserve sets it 20 basis point under the top range of the federal funds rate. They will continue the overnight repo operations to stablize the federal funds rate. They set the rate on the overnight repos five points under
As appropriate to sustain the expansion of the fed sees longer run federal funds rate dropping from 2. 8 to 2. 5 . On inflation the fed closely monitoring inflation at it point. The forecast is for headline inflation to fall 1. 5 this year. The fed sees core inflation slipping to 1. 8 . Then in 2021 the fed sees a reversal, inflation rising back to 2 . On gdp the fed forecast as 2. 1 in 2019. The fed lowered outlook for unemployment this year to 3. 6 . The fed sees the labor market as strong right now but they say the rising economy at a moderate rate. Now the data shows that Consumer Spending picked up but Business Investment softened. Fed sees uncertain forecast of economy, jobs, ininflation. Very interesting statement but no rate cut today. Looking at one fed president or one fed vote away from a rate cut this year. Two fed votes away from two rate cuts this year. Back to you, charles. Charles edward lawrence, thank you very much thats a whole lot. Here to unpack it all, Danielle Di