FOMC policy guidance was a bit more dovish than expected – Goldman Sachs
Analysts at Goldman Sachs offer their afterthoughts on the Federal Reserve’s (FOMC) December monetary policy decision announced in the US last session.
“FOMC raised the funds rate target range to 2¼% -2½%, as widely expected.
Median dot in the Summary of Economic Projections now shows a 2-1 baseline for rate hikes in 2019-2020, compared to 3-1 in September.
But the average dot declined significantly, a dovish surprise suggesting broad endorsement of the new baseline.
Changes to the post-meeting statement were generally dovish as well.
While the growth characterization was more upbeat than we had expected, the policy guidance was a bit more dovish than we had expected."