Global| Apr 25 2012FOMC Sustains Level of Monetary Accommodation
by:Tom Moeller
|in:Economy in Brief
Summary
As expected, the Federal Open Market Committee today left the Federal funds rate in a "range from 0 to 1/4 percent." The Fed funds rate has remained unchanged since late-2008 at its lowest level ever. The discount rate also was left [...]
As expected, the Federal Open Market Committee today left the Federal
funds rate in a "range from 0 to 1/4 percent." The Fed funds
rate has remained unchanged since late-2008 at its lowest level ever. The
discount rate also was left unchanged at 0.75%. The Fed indicated that the
economy may warrant an exceptionally low Fed funds rate at least through
late 2014.
The assessment of the economy was unchanged and indicated that there's been moderate improvement. The Fed noted that "labor market conditions have improved" and "household spending and business fixed investment have continued to advance." However, "the housing sector remains depressed."
The Fed stated that "inflation has picked up somewhat, mainly reflecting higher prices of crude oil and gasoline. However, longer-term inflation expectations have remained stable."
"The Committee also decided to continue its program to extend the average maturity of its holdings of securities as announced in September."
The latest press release from the Federal Reserve can be found here and its economic projections are available here.
The Haver databases USECON, WEEKLY and DAILY contain the figures from the Federal Reserve Board.
| Current | Last | 2010 | 2009 | 2008 | |
|---|---|---|---|---|---|
| Federal Funds Rate, % (Target) | 0.00-0.25 | 0.00-0.25 | 0.17 | 0.16 | 1.93 |
| Discount Rate, % | 0.75 | 0.75 | 0.72 | 0.50 | 2.39 |
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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