Fed Policy Announcement (May)

The Fed admitted in the statement issued after today’s FOMC meeting that “in recent months, there has been a lack of further progress toward the… 2% inflation objective”. Otherwise, today’s statement was largely unchanged – with officials still looking to gain “greater confidence” the inflation is moving down to 2% sustainably before it would be appropriate to cut rates. The vote was unanimous and there is nothing to suggest that rate hikes are back on the table – although Chair Jerome Powell will undoubtedly be asked the question in his upcoming press conference.