Analyst Note| Eric Compton, CFA |
In its latest statement March 17, the Federal Open Market Committee unsurprisingly held the federal-funds rate at 0.0%-0.25%. This really wasn’t where the excitement was, as nobody expected a change in rates. Instead, the focus was on the release of new economic projections, as well as any hints of a change in the verbiage of the release related to what is now expected to be a strong recovery that might also push inflation higher. Based on our read of the Federal Reserve's most recent statements, we don’t plan to make any changes to our current rate forecasts in our U.S. bank models.