Global| Sep 21 2016FOMC Leaves Fed Funds Rate Unchanged; Adjusts Growth Expectation Downward
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the fed funds rate was left unchanged in the range of 0.25%-0.50%, as expected. The commentary in today's release was much the same as after the last meeting. Improvement in the [...]
At today's meeting of the Federal Open Market Committee, the fed funds rate was left unchanged in the range of 0.25%-0.50%, as expected.
The commentary in today's release was much the same as after the last meeting. Improvement in the labor market was highlighted, and although the unemployment remained steady, "job gains have been solid."
Consumer spending was viewed as strong, but business investment was soft. Price inflation was seen as running below the longer-term 2% objective, due to lower energy prices and lower prices for non-energy imports.
Updated projections for economic activity were released. This year's GDP growth forecast was reduced to 1.8% from 2.0% expected at the last meeting. Expected growth next year and in 2018 was left at 2.0%. Over the long term, 1.8% growth was expected rather than 2.0% projected in June. PCE price inflation was expected to be 1.3% this year versus 1.4% expected earlier. Projections for 2017 and for 2018 were unchanged at 1.9% and 2.0%, respectively. Core PCE price inflation forecasts were unchanged at 1.7% in 2016, 1.8% in 2017 and 2.0% in 2018. The unemployment rate was projected to decline to 4.5% by 2018, revised from 4.6%.
The press release for today's FOMC meeting can be found here.
Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.
| Current | Last | 2015 | 2014 | 2013 | 2012 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.25-0.50 | 0.25-0.50 | 0.13 | 0.09 | 0.11 | 0.14 |
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.
