Global| Apr 29 2015FOMC Leaves Fed Funds Rate Unchanged; Expects Economic Improvement
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the Fed indicated that the recent slowdown in economic growth was related to "transitory" factors. Also noted was that labor markets remained "underutilized." It continued to [...]
At today's meeting of the Federal Open Market Committee, the Fed indicated that the recent slowdown in economic growth was related to "transitory" factors. Also noted was that labor markets remained "underutilized." It continued to suggest that "with appropriate policy accommodation, economic activity will expand at a moderate pace."
The Fed continued to indicate that inflation was running below its long-run objective, due to lower energy prices and falling non-energy import prices. It noted that "longer term inflation expectations have remained stable."
As a result of these views, the Fed elected to leave its target for the federal funds rate at 0 to 1/4 percent.
The press release for today's FOMC meeting can be found here.
The backdrop to today's meeting was a recent pickup in M2 growth to 6.1% y/y from its October low of 5.1%, and a recovery in monetary base growth to 3.9% y/y after having been negative in February. In addition, the foreign exchange value of the U.S. dollar has risen roughly 20% during the past year.
Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.
| Current | Last | 2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.00-0.25 | 0.00-0.25 | 0.11 | 0.14 | 0.10 | 0.17 |
| Discount Rate, % | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.72 |
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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