The Federal Open Market Committee voted to raise the fed funds rate target 25 basis points to between 1% and 1.25%.

Federal Reserve Bank of Minneapolis President Neel Kashkari.
Federal Reserve Bank of Minneapolis President Neel Kashkari. Bloomberg News

Federal Reserve Bank of Minneapolis President Neel Kashkari dissented, preferring to hold rates steady.

There were no hints in the statement about future hikes, although the Summary of Economic Projections showed one more this year.

The FOMC statement said the panel "expects to begin implementing a balance sheet normalization program this year, provided that the economy evolves broadly as anticipated." The Fed plans to “cap” Treasuries at $6 billion a month to start and increase in $6 billion increments over three-month intervals for a year, until it reaches $30 billion a month.

For mortgage backed securities, the FOMC expects a $4 billion a month cap, rising $4 billion at three-month intervals until it reaches $20 billion a month."

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.
Gary Siegel

Gary Siegel

Gary Siegel has been at The Bond Buyer since 1989, currently covering economic indicators and the Federal Reserve system.