The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote. They also commented that economic conditions warrant exceptionally low levels of the Fed Funds rate for an extended period. Kansas City Fed President Thomas Hoenig was the lone dissenter, citing against the policy believing that a repeated expectation could lead to the buildup of “financial imbalances” and run the risk of macroeconomic and financial instability. Market reaction has been a positive for stocks (Dow up 77 points) and a not so positive for bonds (down 30/32’s), notes (down 19/32’s), and mortgage backs (down 11/32’s). Keep your defense on the field.
The FOMC kept the short term Fed Funds rate unchanged (between 0% and .25%) with a 9 to 1 vote
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