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Economy in Brief

FOMC Leaves Fed Funds Target Unchanged
by Tom Moeller  May 2, 2018

At today's meeting of the Federal Open Market Committee, the federal funds rate target was held constant in a range between 1.50% and 1.75%. The financial markets had expected today's action as indicated in the Action Economics Forecast Survey. The minutes to today's meeting stated, "The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation."

The Fed recognized that "growth in consumer spending moderated from its strong fourth-quarter pace while business investment continued to grow strongly." Price inflation was running close to 2 percent.

The Fed's statement also indicated that "with further gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in the medium term and labor market conditions will remain strong."

The minutes indicated that "The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run."

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 2017 2016 2015 2014
Federal Funds Rate Target 1.50% - 1.75% 1.50% - 1.75% 1.00% 0.40% 0.13% 0.09%
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