HORAN Capital Advisors

Fed Holds on Policy & Shares Updated Projections

As expected, the Federal Reserve (Fed) left interest rates unchanged at the zero bound. Additionally, Committee members unanimously supported expansion of the balance sheet with purchases of Treasuries, agency mortgage-backed securities (MBS) and agency commercial mortgage-backed securities (CMBS) to continue, at least at the current pace. During his post-meeting press conference, Fed Chair Jerome Powell noted some of the recent improving economic data, including the May jobs report, but also acknowledged the recovery will be a long road. Investors can expect continued accommodative monetary policy and should recognize the Fed’s willingness to employ necessary emergency tools to achieve the goals of 2 percent inflation and full employment.

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