The Fed Pledges Continued Support (Again)
This afternoon, at the conclusion of the two-day July FOMC meeting, Fed officials left the overnight fed funds rate unchanged at 0.00%-0.25%. The Fed also pledged to keep monthly QE asset purchases at, or above the current rate over the coming months. With treasury-note yields at fresh lows along most of the curve, the committee saw no need for additional forward guidance. In the press conference that followed, Chairman Powell reiterated the Fed is committed to using all of its tools to prevent further damage to the economy. Stocks rallied on the news that the Fed will continue to support the markets.