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Economy in Brief

FOMC Leaves Rate Unchanged; Lowers Economic Growth Expectations
by Tom Moeller  June 15, 2016

At today's meeting of the Federal Open Market Committee, the Fed funds rate was left unchanged in the range of 0.25%-0.50%, as expected.

Economic growth projections were revised downward, however, from those developed for the last meeting. The economy is expected to grow 2.0% annually through 2017, versus modest improvement to 2.2% this year then 2.1% in 2017 foreseen at the last meeting. The unemployment rate is projected to decline to 4.6% versus 4.7% expected earlier.

Core PCE inflation forecasts were little-changed at 1.7% for this year and 1.9% for next. That's versus 1.6% and 1.9% expected earlier, respectively.

This economic backdrop lowered the level of the Fed funds rate to 1.6% next year from 2.4% expected at the last meeting.

The press release for today's FOMC meeting can be found here.

The economic forecasts are set against the backdrop of recently steady 6.0% growth in M2.

Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.

Current Last 2015 2014 2013 2012
Federal Funds Rate, % (Target) 0.25-0.50 0.00-0.25 0.13 0.09 0.11 0.14
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