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Economy in Brief

FOMC Holds Interest Rates Steady; Signals Stability Through 2020
by Tom Moeller  December 11, 2019

The Federal Reserve kept the target range for the Federal funds rate at 1.50% to 1.75% at today's FOMC meeting. The lack of action was expected in the Action Economics Forecast Survey.

Today's action was unanimous amongst FOMC voters.

Comments which accompanied today's action were little changed from earlier meetings, including that the labor market has stayed solid and that economic activity continues to rise at a moderate rate. The pace of consumer spending continues strong but business investment and exports remain weak. The Fed remarked again that international developments could play a role in determining future action.

Accompanying today's meeting were scattered revisions to economic estimates. The real GDP growth estimates were unchanged at 2.2% in 2019, 2.0% in 2020, 1.9% in 2021 and 1.8% in 2022. Core PCE price inflation should come in this year at 1.6% (revised from 1.8%), then 1.9%, 2.0% and 2.0% in the following three years, respectively. The civilian unemployment rate estimate of 3.6% this year was reduced from 3.7% and will be followed by 3.5% (revised from 3.7%) in 2020, 3.6% in 2021 (revised from 3.8%) then 3.7% in 2022 (revised from 3.9%).

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

Current Last 2018 2017 2016 2015
Federal Funds Rate Target 1.50%-1.75% 1.50%-1.75% 1.82% 1.00% 0.40% 0.13
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