The Federal Open Market Committee today announced it would maintain the target range for the…
The Federal Open Market Committee announced that it would not raise the federal funds rate, leaving the target range at 5.25% to 5.5%.
The Federal Open Market Committee should be “cautious and patient” when it comes to further tightening of monetary policy or risk doing more harm than good, Federal Reserve Bank of Atlanta Raphael Bostic said.
While inflation has moved down from its peak, it remains too high and the Federal Open Market Committee is prepared to raise the federal funds rate further if necessary, Federal Reserve Chairman Jerome Powell said.
Federal Open Market Committee members were somewhat divided about the need to once again raise the federal funds rate, although ultimately all agreed to do so, according to the minutes from the FOMC’s July meeting.
The economy may have reached the point where the Federal Open Markets Committee can hold off further increases in the federal funds rate and let the monetary policy actions it has already taken run their course, said Patrick Harker, president of the Federal Reserve Bank of Philadelphia.
The Federal Open Market Committee announced it would raise the target range for the federal funds rate by 25 basis points to 5.25% to 5.5%.
Against a backdrop of tightening credit conditions and higher interest rates expected to continue weighing on the economy, Federal Open Market Committee members decided to maintain the target range for the federal funds rate at 5% to 5.25%, according to minutes from the committee’s June meeting.
The Federal Open Market Committee may raise the federal funds rate at least two more times as it continues the fight against inflation, Federal Reserve Chairman Jerome Powell said.
It may make sense for the FOMC to continue raising the federal funds rate to fight inflation, but at a more moderate pace than it has pursued over the past year, Federal Reserve Chairman Jerome Powell said.