Global| Jan 27 2010FOMC Leaves Interest Rates Unchanged
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Open Market Committee today left the Federal funds rate in a "range from 0 to 1/4 percent." The Fed funds rate remained unchanged from late-2008 at its lowest level ever. The discount rate also was left unchanged at 0.5%. [...]
The FOMC statement regarding the economy was upgraded slightly. "Information received since the Federal Open Market Committee met in December suggests that economic activity has continued to strengthen and that the deterioration in the labor market is abating."
Regarding inflation the statement was succinct. "With substantial resource slack continuing to restrain cost pressures and with longer-term inflation expectations stable, inflation is likely to be subdued for some time."
Finally, the Fed left little-changed its prior comments on the improved functioning of financial markets. Moreover, one board member indicated "that economic and financial conditions had changed sufficiently that the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted."
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 | 2009 | 2008 | 2007 | |
|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.00 - 0.25 | 0.00 - 0.25 | 0.16 | 1.93 | 5.02 |
| Discount Rate, % | 0.50 | 0.50 | 0.50 | 2.39 | 5.86 |
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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