Global| Mar 16 2016FOMC Leaves Rate Unchanged; Notes Global Economic Risks & Low Inflation
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 Fed again emphasized that "global economic and financial developments continue to pose risks." It also [...]
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 Fed again emphasized that "global economic and financial developments continue to pose risks." It also stated, "In light of the current shortfall of inflation from 2 percent, the Committee will carefully monitor actual and progress toward its inflation goal."
Looking forward, the Fed again indicated that "the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run."
Updated economic projections foresaw GDP growth of 2.2% this year, then 2.1% in 2017 and 2.0% in 2018. These figures were scaled back from 2.4%, 2.2% and 2.0%, respectively. "Core" PCE price inflation of 1.6% this year, then 1.8% in 2017 and 2.0% in 2018 compared to 1.6%, 1.9% and 2.0%. The unemployment rate forecast for 2017 was pared to 4.6% from 4.7%, and for 2018 it was reduced to 4.5% from 4.7%.
The press release for today's FOMC meeting can be found here.
The economic backdrop today's to today's meeting contained a February decline in the Fed's Labor Market Conditions Index, as well as an upturn in growth in the "core" PCE price index.
Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.
| 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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