Global| Jan 28 2015FOMC Sees Economic Expansion as "Solid"
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the Fed reaffirmed its prior view that the U.S. expansion is continuing at a "solid pace." Strong job growth and a low unemployment rate were boosting consumer spending, aided [...]
At today's meeting of the Federal Open Market Committee, the Fed reaffirmed its prior view that the U.S. expansion is continuing at a "solid pace." Strong job growth and a low unemployment rate were boosting consumer spending, aided further by the decline in energy prices. The continuing recovery in capital spending was seen to be outpacing the "slow" housing market recovery.
Regarding price inflation, the Fed noted that lower energy prices had reduced inflation below its long-term objective of 2%. Moreover, longer-term inflation expectations remained stable.
The Fed expected that the moderate economic expansion would continue and that, following near-term pressures related to lower energy prices, inflation would rise to its 2% target.
As a result of these views, the Fed elected to leave its target for the federal funds rate at 0 to 1/4 percent.
The press release for today's FOMC meeting can be found here.
The backdrop to today's meeting was slightly faster M2 growth of 6.3% y/y and a pickup in growth of the monetary base to 8.4% y/y.
Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.
| Current | Last | 2013 | 2012 | 2011 | 2010 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.00-0.25 | 0.00-0.25 | 0.11 | 0.14 | 0.10 | 0.17 |
| Discount Rate, % | 0.75 | 0.75 | 0.75 | 0.75 | 0.75 | 0.72 |
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.
