Recent Updates

  • China: Oil Consumption (Oct)
  • Philippines: Producer Price Index (Nov)
  • Australia: Retail Trade (Oct), Retail Deposits and Investment Rates (Nov)
  • Australia: Regional Climate Summaries (Nov)
  • more updates...

Economy in Brief

FOMC Lifts Fed Funds Rate as Expected
by Tom Moeller  July 27, 2022

At today's meeting of the Federal Open Market Committee (FOMC), the Fed announced a 75-basis point increase in the target range for the Federal funds rate to 2.25% - 2.50%. It was the second consecutive 75-basis point move and placed the rate at the highest level since July 2019, up from a low near zero in mid-March.

The Fed has raised the funds rate at four consecutive meetings. The latest move was in line with expectations in the Action Economics Forecast Survey and it was endorsed by each member of the FOMC.

Fed Chairman Jerome H. Powell indicated that "From the standpoint of our Congressional mandate to support maximum employment and price stability, the current picture is plain to see: The labor market is extremely tight, and inflation is much too high."

The statement which accompanied today's action indicated that the Fed "anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities.

The Fed also indicated that "Recent indicators of spending and production have softened. Nonetheless, job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures."

The statement issued following today's meeting can be found here.

large image