CIBC Research discusses its reaction to today's FOMC September policy statement.
"The Fed put its recently adopted framework to full use today, spelling out in clear language what it would take to move off its near-zero interest rate policy. Simply put, it won’t do so until we’ve reached full employment, and inflation is not only at 2%, but on track to “moderately exceed it for some time.” QE will run “over the coming months” at least at the current pace. Two members wanted somewhat different wording, but neither of their suggestions would point to a rate hike anytime remotely soon," CIBC notes.
"All this despite the fact that growth projections for this year are materially better, with much of that given back in softer outlooks for the coming two years. The Fed doesn’t see 2.0% PCE inflation until 2023, and with only four dissenting votes, doesn’t expect to hike until post-2023 as a result, with no change to the longer term view that rates will eventually get back to 2.5%," CIBC adds.