31.01.201908:45 Forex Analysis & Reviews: What did the Fed say on 01/31/2019?

The Fed kept rates at 2.25 - 2.5% and gave the following comment:

The Fed has noted a significant increase in economic activity and a further improvement in the labor market situation due to the average growth of jobs in recent months and the remaining low unemployment rate.

The Fed states that over the period between commission meetings, family expenses continued to increase substantially, while the expansion of investments by business structures slowed compared with more forced rates earlier last year.

The Fed still assesses long-term inflation expectations as stable, despite the fact that the compensatory effect of market-based measures on inflation has declined in recent months. At the same time, calculated on a 12-month basis, general inflation and core inflation, which do not take into account energy and food prices, remain close to 2%.

The Fed is committed, in accordance with its authority, to promote maximum employment and price stability. To ensure the implementation of these tasks, the Fed decided to keep the target interest rate range for federal funds at 2.25% -2.50%. The Fed continues to view the sustainable expansion of economic activity, strengthening the labor market and inflation, close to the symmetrical 2% target level designated by the Fed, as the most likely trends. Given the global economic and financial processes and restrained inflationary pressure, the Fed will be patient to determine the next steps to regulate the target interest rate range for federal funds that will contribute to the desired results.

In determining the timing and scale of the future regulation of the target interest rate range for federal funds, the Fed will be guided by both achieved and expected economic progress in relation to its goals of maximum employment and symmetrical inflation at 2%. This approach will be based on a wide range of information, including parameters of labor market conditions, indicators of inflationary pressure and inflation expectations, financial and international events.