Recent Updates

  • Singapore: Housing & Development Board Annual Report (2017)
  • South Africa: Leading Indicators (Oct)
  • Romania: Central Bank Balance Sheet, MFI Deposits, Loans to Households (Sep)
  • Ireland: Bank Lending Survey (Q4)
  • Hong Kong: CPI (Sep)
  • Germany: PPI (Sep)
  • Azerbaijan: GDP (Q2)
  • Russia: Public External Debt (Sep)
  • more updates...

Economy in Brief

FOMC Will Continue Accommodative Policy and Asset Purchases
by Tom Moeller  December 12, 2012

As expected, the Federal Open Market Committee today left the Federal funds rate in a "range from 0 to 1/4 percent". The Fed funds rate has remained unchanged since late-2008 at its lowest level ever. The discount rate also was left unchanged at 0.75%. The Fed indicated "that this exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent, inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal, and longer-term inflation expectations continue to be well anchored."

Moreover, "... the Committee will continue purchasing additional agency mortgage-backed securities at a pace of $40 billion per month. The Committee also will purchase longer-term Treasury securities after its program to extend the average maturity of its holdings of Treasury securities is completed at the end of the year, initially at a pace of $45 billion per month."

Regarding the economy, "Although the unemployment rate has declined somewhat since the summer, it remains elevated. Household spending has continued to advance, and the housing sector has shown further signs of improvement, but growth in business fixed investment has slowed". As for prices, "Inflation has been running somewhat below the Committee's longer-run objective, apart from temporary variations that largely reflect fluctuations in energy prices. Longer-term inflation expectations have remained stable."

The press release for today's FOMC meeting can be found here.

Haver's SURVEYS database contains the projections from the Federal Reserve Board. The economic data can be found in Haver's USECON database.

 

  Current Last 2011 2010 2009 2008
Federal Funds Rate, % (Target 0.00-0.25 0.00-0.25 0.10 0.17 0.16 1.93
Discount Rate, % 0.75 0.75 0.75 0.72 0.50 2.39
close
large image