Global| Dec 13 2017FOMC Increases Rates as Economy Firms
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the federal funds rate target was raised to a range of 1.25 percent to 1.50 percent from 1.00 percent to 1.25 percent. It was the third action taken this year, lifting rates [...]
At today's meeting of the Federal Open Market Committee, the federal funds rate target was raised to a range of 1.25 percent to 1.50 percent from 1.00 percent to 1.25 percent. It was the third action taken this year, lifting rates from little more than zero, where they stood from early-2009 through the end of 2015. The financial markets had expected today's action as indicated in the Action Economics Forecast Survey.
The Fed continued to characterize the stance of monetary policy as accommodative, basing its action on continuing growth in the labor market, consumer & business spending, as well as inflation that is running below their two percent long-term objective.
The Fed's expectation for economic growth next year was raised to 2.5 percent from 2.1 percent. The economy's long term expected growth rate was left unchanged at 1.8 percent. Expected PCE price inflation in 2018 remained at 2.1 percent, but the forecasted unemployment rate was lowered to 3.9 percent from 4.1 percent.
The press release for today's FOMC meeting can be found here.
Haver's SURVEYS database contains the economic projections from the FOMC.
| Current | Last | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.25%-1.50 | 1.00%-1.25% | 0.40% | 0.13% | 0.09% | 0.11% |
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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