Tag Archives: FOMC

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 ...

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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 ...

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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, ...

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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 ...

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Yellen: Conditions Less Supportive of Growth

In a hearing before the House Financial Services Committee, Chair Yellen reiterated that the Fed intends to raise rates gradually, while also noting that financial conditions have deteriorated some. “Financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation ...

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Fed Holds Steady in January Meeting

The Federal Reserve 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. In a post meeting statement, the Committee again noted strong job gains and additional decline in labor force underutilization, as well as moderate increases in household spending, business fixed investment ...

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FOMC Minutes: Labor Market Has Improved, Inflation Still Below Target

In the minutes of their December 15 –16th Federal Open Market Committee (FOMC) meeting, Fed officials justified their decision to raise the federal funds rate, citing a range of labor market, and domestic and foreign developments. In terms of the size and timing of future rate hikes, members expect economic conditions to warrant only gradual increases in the federal funds ...

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Fed Raises Rates for First Time Since 2006

The Federal Reserve Open Market Committee (FOMC) unanimously voted to raise the target range for the federal funds rate by 25 basis points to 0.25 to 0.50 percent. Today’s widely expected move marked the first change in the federal funds rate since it was cut to virtually zero during the crisis in 2008. The projected policy path for the federal ...

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Yellen: Delaying Rate Hike Much Longer Could Risk Recession

Federal Reserve Chairman Janet Yellen said today that the economy has “recovered substantially” in recent years and hinted that an increase to the federal funds rate could come before year-end while cautioning that a delay could inadvertently lead to another recession.

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Beige Book: Labor Markets Tighten, Mixed Manufacturing Growth

Economic activity expanded across most of the twelve Federal Reserve Districts according to the November edition of the Federal Reserve Beige Book. Seven districts reported modest growth, while conditions leveled off in the New York District. Labor markets tightened modestly since the previous report. The Atlanta, Kansas City and Dallas districts reported a slight increase in hiring, while the remaining ...

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