Tag Archive for ‘monetary policy’

Fed Keeps Rate Steady: Higher Rates Expected

As was widely expected, the Federal Open Market Committee (“FOMC”), the monetary policy making body of the Federal Reserve, maintained the federal funds rate at a range of 1.50 to 1.75 percent following its meeting that convened on May 1-2, a rate it deems “accommodative”. Going forward, the FOMC expects that, with further gradual adjustments in the stance of monetary… Read More ›

Fed Raises Key Policy Rate

As was widely expected, the Federal Open Market Committee (the FOMC) raised its key interest rate 25 basis points to a range of 1.50 percent to 1.75 percent following its March meeting. The Fed noted that its decision reflected “realized and expected labor market conditions and inflation”, but that the current level of the federal funds rate remains “accommodative”, supporting… Read More ›

Fed Stands Pat at Chair Yellen’s Final FOMC Meeting

In Janet Yellen’s final meeting as Chair, the Federal Open Markets Committee (FOMC or Committee) voted unanimously to maintain the federal funds rate, its short-term policy rate, at a range of 1.25 percent and 1.50 percent, a level it deems “accommodative”. According to estimates of financial markets expectations, this decision was widely expected. Calculations of the appropriate level for the… Read More ›

Fed Raises Key Rate, Balance Sheet Normalization to Accelerate in January

In its statement following its December 12-13, 2017 meeting, the Federal Open Markets Committee (FOMC) decided to raise the target range for the federal funds rate to a range of 1.25 to 1.5 percent, a decision that was widely expected. Despite the increase, the FOMC believes that the “stance of monetary policy remains accommodative”. As illustrated by the Federal Reserve… Read More ›

Fed Leaves Rates Unchanged, Current Range Deemed “Accommodative”

On Wednesday, November 1, the Federal Open Markets Committee (“FOMC”) decided to leave its interest rate, the federal funds rate, unchanged at a range of 1.00 to 1.25 percent. Although the effects of the past hurricanes have reversed the longer trend in both employment and inflation, the hurricanes’ impacts are expected to fade and the longer-trend will reappear. In the… Read More ›

Implications Of FOMC Normalization Process For Mortgage Rates

In its statement, the Federal Open Markets Committee (FOMC) left its key interest rate unchanged at a range of 1.0 to 1.25 percent. As signaled in its last statement, the FOMC, beginning in October, will initiate the balance sheet normalization program. The contents of this program are described in the June 2017 Addendum to the Committee’s Policy Normalization Principles and… Read More ›

May Meeting of the Federal Open Market Committee – From Idea to Proposal

Beyond confirming that if economic activity continues to unfold as expected another increase in the federal funds rate would be appropriate soon (June), the minutes from the May meeting of the Federal Open Market Committee (FOMC) added relatively little to the picture of the path of monetary policy that was laid out in the post-meeting statement and previous policy discussions…. Read More ›

May Meeting of the Federal Open Market Committee – Accentuate the Positive

Economic activity sputtered in the first quarter, job growth stumbled in March, and inflation turned negative at both the headline and core (excluding food and energy) levels. Policymakers on the Federal Open Market Committee (FOMC) “decided to maintain the target range for the federal funds rate at 3/4 to 1 percent” and pronounced “Near-term risks to the economic outlook appear… Read More ›