Question

3. What was the Fed’s announced monetary policy decision at the June 18-19, 2019 FOMC meeting? What rationale did the fed give for its decision? What hints did they give toward their outlook on the future? How did the financial markets receive their decision? You should be able to find the answer to all of these questions in one or two news reports following the meeting or in the press release issued by the fed.

Answer 1

Answer:-

The Fed monetary policy decision at the June 18-19, 2019 FOMC meeting

The FOMC held the rates steady and voted 9-1 to keep the benchmark rate in a target range of 2.25% to 2.5%. In FOMC 8 members called for one or more rate cuts this year.

The rationale behind the decision to hold the rates was that the economy activity was rising at a moderate rate, the jobs growth was solid, the unemployment rate was low and the lower inflation rate that was below the Feds objective of 2%.

The decision to take action in the future FOMC meet will depend on different parameters by monitoring the bond markets, the housing and auto sales and the uncertainty in the global economic landscape.

The decision was divided over what is the future course of action but left open the possibility of monetary policy easing could happen before the end of the year 2019 depending on how conditions unfold.

The financial markets reacted positively in anticipation of the future rate cuts in the coming  FOMC meets which seems to be a certainty with the dovish commentary and a verdict in which majority voted for rate cuts in the 2019.