FOMC SNAP ANALYSIS: Fed holds rates, as expected, with two hawkish dissenters as attention turns to the presser

The Federal Reserve left rates on hold at 3.75-4.00%, as widely expected, with Cook and Hammack dissenting in favour of a 25bps hike, with the former somewhat of a surprise. As has been the case under the Warsh stewardship, the statement was little changed, but added one key line, which says, "The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the 2% goal". This likely shows the Fed are committed to a data dependent approach when deciding policy, but we will look for any further elaboration from Chair Warsh's press conference. Aside from that addition, the only other change was its upgrading of language around economic growth to "strong" from "solid". It reiterated the familiar lines that inflation remains elevated and once again highlighted the steady labour side of mandate, stating "Job gains have kept pace with the workforce, and the unemployment rate has changed little". All in all, desks await Warsh's presser for any further clues ahead, but he is usually reluctant to provide any explicit forward guidance.