Global| May 02 2018FOMC Leaves Fed Funds Target Unchanged
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the federal funds rate target was held constant in a range between 1.50% and 1.75%. The financial markets had expected today's action as indicated in the Action Economics [...]
At today's meeting of the Federal Open Market Committee, the federal funds rate target was held constant in a range between 1.50% and 1.75%. The financial markets had expected today's action as indicated in the Action Economics Forecast Survey. The minutes to today's meeting stated, "The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation."
The Fed recognized that "growth in consumer spending moderated from its strong fourth-quarter pace while business investment continued to grow strongly." Price inflation was running close to 2 percent.
The Fed's statement also indicated that "with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong."
The minutes indicated that "The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run."
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 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.50% - 1.75% | 1.50% - 1.75% | 1.00% | 0.40% | 0.13% | 0.09% |
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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