FOMC policy guidance was a bit more dovish than expected – Goldman Sachs

Analysts at Goldman Sachs offer their afterthoughts on the Federal Reserve’s (FOMC) December monetary policy decision announced in the US last session.

Key Quotes:

“FOMC raised the funds rate target range to 2¼% -2½%, as widely expected.

Median dot in the Summary of Economic Projections now shows a 2-1 baseline for rate hikes in 2019-2020, compared to 3-1 in September.

But the average dot declined significantly, a dovish surprise suggesting broad endorsement of the new baseline.

Changes to the post-meeting statement were generally dovish as well. 

While the growth characterization was more upbeat than we had expected, the policy guidance was a bit more dovish than we had expected."