his was a fairly substantial FOMC meeting. The FOMC doubled down on its near-zero rate policy despite the economic gains of recent months. This was entirely consistent with recently announced changes to the Fed’s policy strategy. In a surprise move, it enhanced its forward guidance such that the guidance is now consistent with the updated strategy. The Fed continues to lean into the downside risks for the forecast, another reason not to doubt their commitment to zero-rates in the foreseeable future. The primary implication is that the Fed is committing to an extended period of very low and negative real policy rates ... (full story)