Global| Jul 29 2020FOMC Holds Fed Funds Rate Near Zero, Citing Coronavirus Hardships
by:Tom Moeller
|in:Economy in Brief
Summary
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. The Fed indicated that it will maintain this target range until the economy "is on track to achieve its maximum [...]
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. The Fed indicated that it will maintain this target range until the economy "is on track to achieve its maximum employment and price stability goals."
In the press release, the FOMC stated "The coronavirus outbreak is causing tremendous human and economic hardship across the United States and around the world." The Fed also noted that there were indications that the economy and employment had improved somewhat, but the levels of activity remained depressed.
The Fed also stated that consumer price inflation was being held down by weak demand and low oil prices and that overall financial conditions were improving.
The statement indicated that future economic developments will depend on the course of the virus, but that it would extend dollar liquidity swaps and temporary repo operations through March 31, 2021. These measures were established to facilitate the flow of U.S. dollars to banks, both foreign and domestic.
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 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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