Highlights of the December 13, 2017 FOMC interest rate decision

  • Prior was 1.00% to 1.25%
  • Economists and markets were virtually unanimous in pricing in a 25 basis point cut
  • Evans and Kashkari dissented
  • Vote was 7-2
  • Fed sees faster growth trajectory and faster decline in jobless rate in projections
  • Says economic activity and job gains have been solid
  • Inflation has declined this year but still expects it to reach 2% target over medium term
  • "Job gains have been solid"
  • Repeats that economic activity has been rising at a solid rate
  • Omits statement that inflation has 'remained soft' but continues to say it has declined this year
  • Hurricanes haven't affected outlook for the economy
  • Labor market conditions will 'remain strong' rather than 'strengthen somewhat further'
  • No change in guidance

The Fed hikes rates, no surprise. Neither Evans nor Kashkari vote next year.

As for the details, there is a slight downgrade to job growth and a slightly better nod to inflation.

Press conference coming up at the bottom of the hour.