FOMC

The early dot plots were characterized by overly optimistic projections for gross domestic product, which were later revised down, while the projections made after 2017 have been somewhat pessimistic, but more accurate, according to research by the Federal Reserve Bank of San Francisco.

Fed chair calls the illness a downside risk that arose while others are receding.

The Federal Reserve’s point person on financial regulation said the central bank is considering changes to its bank-supervision framework to enhance money-market liquidity.

The prevailing opinion is the Federal Reserve will note the downside risks caused by the virus, won’t cut rates in March, but bets are hedged for later in the year.

The U.S. central bank’s No. 2 official said it’s too early to determine whether the coronavirus outbreak in China will significantly affect the U.S. economy, which remains in a “good place.”

An economic slowdown was expected in 2019, and the data prove the prediction was correct. Now softening consumer spending could portend the need for the Federal Reserve to ease policy at some point.

Monetary policy is accommodative and will remain so this year, but with the Fed's framework review concluding, some analysts believe it will shift from a 2% symmetric inflation target to an average inflation target.

Despite tax-exempts being expensive, strong technicals are likely to extend into February.

The FOMC post-meeting statement was much like the previous one, with just a minor tweak, as the fed funds target was kept at a range of 1.50% to 1.75%.

Just when everyone thought there would be little drama at this week’s Federal Open Market Committee meeting, the coronavirus has infected the broader markets. Experts still say monetary policy will be immune for now.