- Kazakhstan: Household Deposits (Jun)
- Japan: IP (Jun-Prelim), International Trade, Real Trade Indexes (Jun-Final)
- Macao: International Trade (Jun); Singapore: Labor Market Statistics (Q2-Prelim)
- New Zealand: Building Consents Issued, Foreign Currency Assets & Liabilities & Currency Flows, RBNZ Analytical Accounts (Jun); Australia: Building Approvals (Jun), Import/Export Price Indexes (Q2)
- more updates...
Economy in Brief
U.S. Pending Home Sales Unexpectedly Ease
The NAR reported that pending sales of single-family homes declined 1.8% during June (+11.1% y/y)...
U.S. Mortgage Loan Applications Continue Moving Sideways
The MBA total Mortgage Market Volume Index notched 0.8% higher last week (11.4% y/y)...
German Consumer Sentiment Flat-Lines in August
The GfK consumer confidence climate measure was dead flat in August at a level of 10.1...
U.S. Consumer Confidence Retreats to 10-Month Low
The Conference Board's Consumer Confidence Index declined 8.9% this month (+0.7% y/y) to 90.9 from 99.8 in June...
U.S. Crude Oil Prices Decline Sharply While Gasoline Costs Dip
WTI crude oil costs dropped sharply last week to an average $49.30 per barrel (-52.8% y/y)...
Italian Consumer Confidence Continues Its Erratic Move Lower
Italy's economy is still under a great deal of pressure...
by Tom Moeller July 29, 2015
At today's meeting of the Federal Open Market Committee, the Fed indicated that growth in consumer spending is moderate and the housing sector shows signs of improvement. Together with soft business investment and net exports, the labor market has continued to improve. Labor market slack has diminished this year but inflation remains low, and long-term price expectations have been stable.
Moderate economic growth was expected to continue while risks to the outlook were seen as balanced. Inflation is expected to rise to the Fed's 2 percent objective.
As a result of these views, the Fed elected to leave its target for the federal funds rate at 0 to 1/4 percent. The Fed indicated that "even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run."
The press release for today's FOMC meeting can be found here.
The backdrop to today's meeting was stable M2 growth of 5.8% y/y and monetary base growth of -0.12% y/y. In addition, the foreign exchange value of the U.S. dollar has risen 20.7% during the past year.
Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.
|Federal Funds Rate, % (Target)||0.00-0.25||0.00-0.25||0.09||0.11||0.14||0.10|
|Discount Rate, %||0.75||0.75||0.75||0.75||0.75||0.75|