March 20, 2019 And the Doves Have It by Lester Murray

To the surprise of no one, the FOMC left its policy rate unchanged. More surprising was the much ballyhooed "dot-plot." In that graphic depiction of members' individual preferences, eleven indicated a preference for no rate hikes in 2019. In addition, the Fed will begin, in May, to slow its efforts to shrink the balance sheet with the drawdown coming to a halt at September's end. Bond prices have rallied accordingly with the Ten-Year's yield falling to just over 2.50%. Equities have also rebounded on the news with the DJIA now up slightly for the day. FOMC median estimates for 2019 growth and inflation were slightly below December's projections.