Global| Jun 15 2016FOMC Leaves Rate Unchanged; Lowers Economic Growth Expectations
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. Economic growth projections were revised downward, however, from those developed for the last [...]
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.
Economic growth projections were revised downward, however, from those developed for the last meeting. The economy is expected to grow 2.0% annually through 2017, versus modest improvement to 2.2% this year then 2.1% in 2017 foreseen at the last meeting. The unemployment rate is projected to decline to 4.6% versus 4.7% expected earlier.
Core PCE inflation forecasts were little-changed at 1.7% for this year and 1.9% for next. That's versus 1.6% and 1.9% expected earlier, respectively.
This economic backdrop lowered the level of the Fed funds rate to 1.6% next year from 2.4% expected at the last meeting.
The press release for today's FOMC meeting can be found here.
The economic forecasts are set against the backdrop of recently steady 6.0% growth in M2.
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 | 0.00-0.25 | 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.
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