Global| Mar 15 2017FOMC Lifts Target Interest Rate
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 to a range of 0.75% to 1.00%, from 0.50% to 0.75%. It remained the highest target range since the end of 2008, and followed two [...]
At today's meeting of the Federal Open Market Committee, the targeted federal-funds rate was increased to a range of 0.75% to 1.00%, from 0.50% to 0.75%. It remained the highest target range since the end of 2008, and followed two earlier increases from a 2015 low of 0.12%.
In new language, the Fed indicated that inflation was moving close to its long-term objective of 2%. As stated earlier, accommodative monetary policy was seen to have promoted a further strengthening of labor market conditions.
The Fed continued to indicate that future interest rate adjustments would reflect inflation, labor market conditions and expected inflation readings, as well as financial and international developments.
Expected growth in real GDP was unchanged by the Fed at 2.1% this year and next, then 1.9% in 2019. The expected core PCE price inflation rate was raised slightly for this year to 1.9%, followed by unchanged expectations for 2.0% price growth. Expected unemployment held steady at 4.5% through 2019. The fed funds rate was expected to be roughly 3.0% by the end of 2019.
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 | 0.75%-1.00% | 0.50%-0.75% | 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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