Global| Jun 14 2017FOMC Lifts Interest Rates
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the targeted federal funds rate was increased 25 basis points to a range of 1.00% to 1.25%. The targeted range has been raised four times since the low of 0.12% in place from [...]
At today's meeting of the Federal Open Market Committee, the targeted federal funds rate was increased 25 basis points to a range of 1.00% to 1.25%. The targeted range has been raised four times since the low of 0.12% in place from late-2008 until late-2015.
Improvement in real economic activity prompted today's action. With economic growth remaining moderate, the Fed observed strengthening in the labor market, improved retail spending and expanded capital investment.
Future rate action continues to be dependent on economic and inflation conditions, as well as inflation expectations and international developments.
The Fed expects real economic growth of 2.2% this year, then 2.1% next year and 1.9% in 2019 compared to 2.1%, 2.1% and 1.9% when published in March. Expected core PCE price inflation was pegged at 1.7%, then two years at 2.0% compared to 1.9%, 2.0% and 2.0% at the last meeting. The expected unemployment rates in the final quarters of 2017, 2018 and 2019 of 4.3%, 4.2% and 4.2% were reduced from three years at 4.5%.
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.
| Current | Last | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.00%-1.25% | 0.75%-1.00% | 0.40% | 0.13% | 0.09% | 0.11% |
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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