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Economy in Brief

FOMC Increases Rates as Economy Firms
by Tom Moeller  December 13, 2017

At today's meeting of the Federal Open Market Committee, the federal funds rate target was raised to a range of 1.25 percent to 1.50 percent from 1.00 percent to 1.25 percent. It was the third action taken this year, lifting rates from little more than zero, where they stood from early-2009 through the end of 2015. The financial markets had expected today's action as indicated in the Action Economics Forecast Survey.

The Fed continued to characterize the stance of monetary policy as accommodative, basing its action on continuing growth in the labor market, consumer & business spending, as well as inflation that is running below their two percent long-term objective.

The Fed's expectation for economic growth next year was raised to 2.5 percent from 2.1 percent. The economy's long term expected growth rate was left unchanged at 1.8 percent. Expected PCE price inflation in 2018 remained at 2.1 percent, but the forecasted unemployment rate was lowered to 3.9 percent from 4.1 percent.

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 2016 2015 2014 2013
Federal Funds Rate Target 1.25%-1.50 1.00%-1.25% 0.40% 0.13% 0.09% 0.11%
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