Global| Jul 30 2014FOMC Sees Economic Rebound; Pares Back Bond Purchases Further
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the Fed indicated that the economy, consumer spending, business investment and job creation each had improved. It continued to note, however, significant labor market [...]
At today's meeting of the Federal Open Market Committee, the Fed indicated that the economy, consumer spending, business investment and job creation each had improved. It continued to note, however, significant labor market underutilization and the slow housing market recovery. The Fed stated that fiscal policy was restraining overall economic growth to a diminished degree.
Regarding pricing power, the Fed stated that "the likelihood of inflation running persistently below 2 percent has diminished somewhat."
As a result of the economy's improvement, the Fed reduced the amount of its asset purchases of agency mortgage-backed and longer-term Treasury securities to $25 billion per month from $35 billion per month. The Federal funds rate was left unchanged in a range of 0.00% - 0.25% and the discount rate remained at 0.75%.
The press release for today's FOMC meeting can be found here.
The backdrop to today's meeting was a pickup in M2 growth to 6.8% y/y from a low of 5.4% y/y at the end of last year.
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.
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