Global| Jan 26 2011FOMC Holds Interest Rates Unchanged Citing Low Price Pressures
by:Tom Moeller
|in:Economy in Brief
Summary
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 [...]
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's primary reasons for leaving
rates unchanged focused on inflation and the absence of upward pressure on
either price trends or inflationary expectations.
Regarding economic growth, the recovery was seen as continuing with household spending picking up late last year, but still "constrained by high unemployment, modest income growth, lower housing wealth and tight credit." While a pickup in economic growth has raised commodity prices, the Fed focused on the downtrend in underlying pricing pressures.To promote further economic improvement, the Fed will continue to expand its holdings of Treasury securities. Financial market liquidity is the goal. The accompanying monetary base chart indicates the huge injection of liquidity around the stock market crash.
A complete text of the Fed's latest press release can be found here.
The Haver databases USECON, WEEKLY and DAILY contain the figures from the Federal Reserve Board.
| Current | Last | 2010 | 2009 | 2008 | |
|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.00 - 0.25 | 0.00 - 0.25 | 0.17 | 0.16 | 1.93 |
| Discount Rate, % | 0.75 | 0.75 | 0.72 | 0.50 | 2.39 |
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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