Drumroll Please… A special “late” edition of the View at Two as the FOMC just released their policy decision. After all the anticipation, the statement came in pretty much as expected: the 0-0.25% benchmark rate was of course maintained (and will stay that way until the committee is confident in the economy has recovered) and the Fed will continue to increase its asset holdings at the current pace. Overall a dovish statement, with plenty of caution around the virus determining the course of recovery and acknowledging economic activity / unemployment are well below Jan 1 levels. The announcement hasn’t garnered much market response at all: stocks remain near the highs of the day, and Treasury yields and gold are all little changed from earlier levels though the dollar is slipping a bit – perhaps the upcoming press conference will spur more reaction, but for now the statement is being taken as “inline”
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