The Fed added to uncertainty last week with no consensus coming from the meeting.

As expected, the Fed dropped the target range for Fed Funds by 25 basis points last week. The problem was they sent no signal as to future changes in monetary policy. It was clear from the vote on the FOMC and from the tone of the statement there is no clear consensus as to what happens next. There were three dissenting votes on this cut with two members believing no change was appropriate and one member believing a 50 basis point cut should be executed. There were seven members voting for the 25 basis point cut.

 

PROBANK AUSTING ADVISOR - SEPTEMBER 23, 2019