Global| Jun 13 2018FOMC Raises Fed Funds Target Range
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the federal funds rate target was increased to a range between 1.75% and 2.00%. The financial markets had expected today's action as indicated in the Action Economics Forecast [...]
At today's meeting of the Federal Open Market Committee, the federal funds rate target was increased to a range between 1.75% and 2.00%. The financial markets had expected today's action as indicated in the Action Economics Forecast Survey. The minutes to today's meeting indicated that additional rate increases may be forthcoming.
The minutes focused on economic activity rising at a "solid" rate, with household spending having "picked up" and business investment continuing to "grow strongly."
The Fed noted that total inflation and inflation, less food & energy, have moved close to the 2% objective and that longer-term inflation expectations are little changed.
The Fed updated its economic projections. Estimates for real GDP growth are now 2.8% in 2018, 2.4% in 2019 and 2.0% in 2020. Only 2018 was altered from 2.7%. The core PCE price index is now expected to increase 2.0% this year, 2.1% in 2019 and 2.1% in 2020, changed from 1.9% in 2018 and 2.0% in 2019. The estimates of the civilian unemployment rate of 3.6% this year, 3.5% next year and 3.5% in 2020 were lowered from 3.8% for 2018, from 3.6% for 2019 and from 3.6% for 2020.
The press release for today's FOMC meeting can be found here.
Haver's SURVEYS database contains the economic projections from the FOMC.
| Current | Last | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.75% - 2.00% | 1.50% - 1.75% | 1.00% | 0.40% | 0.13% | 0.09% |
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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