Market Alert - FOMC rate decision

No change in interest rates (surprise!) 0.25% to 0.50%.

Case for increasing FFRate has strengthened, but waiting for further progress toward objectives.

Near term risks balanced versus leaning to the positive

3 dissents: Boston, Cleveland, and another northern district that escapes me.

Dot plots: Very wide dispersion between no hikes and 2 hikes.

2016 -0.25%

2017 growth -0.5%

2018 growth -0.5%

Long-Range growth rate is now below 2.0%, now at a meager 1.8%

Labor market continues to strengthen.

Pace picked up from modest pace at first of year.

Fixed investment soft.

Inflation remains below Fed's 2% target. Really?


Immediate reaction is up and down, but mostly up. Still to shake out, but with over 2 months until a possible rate hike.

SP500 7.49, 0.35%
NASDAQ 17.28, 0.33%
DJ30 62.94, 0.35%
SP400 0.32%
RUTX 0.20%
SOX 0.67%

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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http://www.investmenthouse.com/alertkey.htm


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