Global| Apr 27 2016FOMC Leaves Rate Unchanged
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%. The opening line of today's FOMC statement highlighted the mixed nature of recent economic signals. It was [...]
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%.
The opening line of today's FOMC statement highlighted the mixed nature of recent economic signals. It was observed that labor market conditions have improved further even as economic growth has slowed. Household spending has moderated even though real income growth remains solid and consumer sentiment is high. Housing has improved, but business fixed investment and net exports have been soft.
On the pricing front, it was noted that inflation continued below the Fed's 2% objective, reflecting lower energy prices as well as lower non-energy import prices. The Fed cited indications that longer-term measures of inflation expectations are little changed in recent months.
Future changes in the federal funds rate will reflect ongoing economic developments. It was expected, however, that increases would be gradual, leaving the rate below that which would be likely in the long term.
These developments have occurred against the backdrop of stable 6% growth in the money supply (M2), a narrowing interest rate yield curve and a firm, though recently lower, value of the dollar.
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.
What We Know About Wage Adjustment During the 2007-09 Recession and Its Aftermath from the Federal Reserve Bank of Richmond is available here.
| Current | Last | 2014 | 2013 | 2012 | 2011 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.25-0.50 | 0.00-0.25 | 0.09 | 0.11 | 0.14 | 0.10 |
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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