Recent Updates
- Moldova: External Debt, IIP (Q1)
- Spain: Quarterly Nonfinancial Accounts for Institutional Sectors (Q1)
- Bosnia: GDP by Industry (Q1)
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- France: HH Consumption of Manufactured Goods (May)
- more updates...
Economy in Brief
U.S. Mortgage Applications Continued to Rise, but only Slightly
The Mortgage Bankers Association reported that mortgage applications edged up 0.7% w/w...
Globally Money Supply Slows or Contracts in Real Terms
Money supply trends show that slowing is widespread across the major monetary center countries...
U.S. Consumer Confidence Deteriorates Further in June
The Conference Board's Consumer Confidence Index weakened 4.4% (-23.4% y/y) in June...
U.S. FHFA House Prices Continued to Rise in April
The FHFA House Price Index increased 1.6% during April...
U.S. Advance Trade Deficit Narrowed Slightly in May
The advance estimate of the U.S. international trade deficit in goods narrowed to $104.3 billion in May...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller June 10, 2020
The Federal Reserve left the target for the Fed funds rate in a range of 0.00% to 0.25% at today's meeting of the FOMC.
In the Fed's press release, it stated, "The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world. The virus and the measures taken to protect public health have induced sharp declines in economic activity and a surge in job losses."
"The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term and poses considerable risks to the economic outlook over the medium term."
"The Committee will closely monitor developments and is prepared to adjust its plans as appropriate."
The Fed also indicated it will continue to increase its bond holdings, targeting Treasury purchases at $80 billion per month and mortgage-backed securities at $40 billion.
The full statement issued following today's meeting can be found here.
Today's action was unanimously supported by Committee members.
| Current | Last | 2019 | 2018 | 2017 | 2016 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 0.0% - 0.25% | 0.0% - 0.25% | 2.16% | 1.83% | 1.00% | 0.40 |
The Fed also released updated economic projections:
| 2020 (Q4/Q4) | 2021 (Q4/Q4) | 2022 (Q4/Q4) | |
|---|---|---|---|
| Real GDP | -6.5% | 5.0% | 3.5% |
| PCE Inflation | 0.8% | 1.6% | 1.7% |
| Core PCE Inflation | 1.0% | 1.5% | 1.7% |
| Civilian Unemployment Rate | 9.3% | 6.5% | 5.5% |
