The Federal Open Market Committee yesterday released minutes illuminating its rationale at its May 2-3 meeting for holding the target federal funds rate at 0.75 to 1 percent but sticking to a plan for gradual rate increases throughout the year. The unanimous decision came in light of accelerating economic growth, which followed a notable slowing that prompted the committee to hold rates after its March meeting.
The committee pointed out continued economic growth, most notably in the form of job gains, with a few members noting that global uncertainty had waned. FOMC members also said they will “closely monitor inflation indicators and global economic and financial developments” to determine when to next raise rates, and by how much. The minutes continue to signal the committee’s plans for two more rate hikes in 2017.
Read the FOMC minutes.