A 'strong' statement
The Federal Reserve didn’t mince words in its policy statement released today. In fact, it repeatedly used just one word—“strong”—to describe the economy in general, the labor market, household spending and business capital investment. As for numbers, the Fed, as expected, did not change the federal funds rate from its current range of 1.75-2% (there were no dissents). This Federal Open Market Committee meeting had no press conference or update of economic projections, so the base case of two additional hikes likely to happen this year, indicated in the last FOMC meeting, remains. Despite speculation the Fed might drop or alter its forward guidance, the committee retained its promise to continue increasing rates at a gradual pace.