Tag Archives: FOMC

FOMC Minutes Show Divide on Rate Hike Timing

Fed officials were divided on the timing of an increase in the federal funds rate, according to minutes from the Federal Open Market Committee’s July 26-27 meeting. The committee noted “moderate” economic expansion and strong job gains in July, but based their decision to keep rates as is on the need to further monitor job reports and “global and financial ...

Read More »

FOMC: Economic Risks have Diminished

The Federal Open Market Committee (FOMC) once again decided to maintain the current target for the federal funds rate at 25-50 basis points in July. “Near term risks to the economic outlook have diminished,” said the FOMC in a post-meeting statement. This was likely a reference to both financial market uncertainty following Brexit and labor market uncertainty following an anemic ...

Read More »

FOMC Minutes: No Rate Hike amid Slow Job Growth

Fed officials expressed a degree of uncertainty regarding the slowdown in payroll employment gains in the minutes of their June 14 – 15 Federal Open Market Committee (FOMC) meeting. Participants observed that transitory factors may have understated payroll growth, however many thought the underlying pace of growth had slowed from previous months. Despite weaker labor market growth, participants noted that ...

Read More »

Yellen: Fed Still on ‘Gradual’ Rate Hike Path

Despite disappointing figures for first-quarter GDP growth and May job creation, Federal Reserve Chairman Janet Yellen said today that she believes the remainder of the year will see continued progress toward the Fed’s monetary policy goals and that “further gradual increases in the federal funds rate are likely to be appropriate.”

Read More »

FOMC Minutes: June Rate Hike Still on the Table

In the minutes of their April 26 – 27 Federal Open Market Committee (FOMC) meeting, Fed officials expressed that they may be ready to raise interest rates once again in June. “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward ...

Read More »

Fed Holds Steady in April Meeting

The Federal Open Market Committee (FOMC) decided to maintain the current target for the federal funds rate at 25-50 basis points, as the stance of monetary policy remains accommodative. The post meeting statement noted that economic activity “appears to have slowed” during the intermeeting period, even as labor market conditions improved further. Inflation has continued to run below the Committee’s ...

Read More »

FOMC Minutes: Economic Activity Expanding Moderately

In the minutes of their March 15 – 16 Federal Open Market Committee (FOMC) meeting, Fed officials showed some concern regarding soft business investment and net exports, but noted that data on economic activity and labor market conditions was “broadly consistent with their earlier expectations.” Meeting participants were “encouraged” by the growth of consumer spending over the previous quarters, and ...

Read More »

Fed to “Proceed Cautiously”

In a speech to The Economic Club of New York, Federal Reserve Chair Janet Yellen said that the committee should proceed cautiously in adjusting monetary policy. “This caution is especially warranted because with the federal funds rate so low, the FOMC’s ability to use conventional monetary policy to respond to economic disturbances is asymmetric.” The Chair cited mixed domestic indicators, ...

Read More »

Fed Officials Concerned about Global Turmoil

In the minutes of their January 26 – 27th Federal Open Market Committee (FOMC) meeting, Fed officials showed greater concern regarding the balance of risks to the medium-term economic outlook for inflation and economic growth, noting that uncertainty had increased due to recent developments in financial markets and emerging economies. “Almost all participants cited a number of recent events as ...

Read More »