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Economy in Brief

FOMC Leaves Rate Unchanged
by Tom Moeller  April 27, 2016

At today's meeting of the Federal Open Market Committee, the Fed funds rate was left unchanged in the range of 0.25%-0.50%.

The opening line of today's FOMC statement highlighted the mixed nature of recent economic signals. It was observed that labor market conditions have improved further even as economic growth has slowed. Household spending has moderated even though real income growth remains solid and consumer sentiment is high. Housing has improved, but business fixed investment and net exports have been soft.

On the pricing front, it was noted that inflation continued below the Fed's 2% objective, reflecting lower energy prices as well as lower non-energy import prices. The Fed cited indications that longer-term measures of inflation expectations are little changed in recent months.

Future changes in the federal funds rate will reflect ongoing economic developments. It was expected, however, that increases would be gradual, leaving the rate below that which would be likely in the long term.

These developments have occurred against the backdrop of stable 6% growth in the money supply (M2), a narrowing interest rate yield curve and a firm, though recently lower, value of the dollar.

The press release for today's FOMC meeting can be found here.

Haver's SURVEYS database contains the economic projections from the Federal Reserve Board.

What We Know About Wage Adjustment During the 2007-09 Recession and Its Aftermath from the Federal Reserve Bank of Richmond is available here.

Current Last 2014 2013 2012 2011
Federal Funds Rate, % (Target) 0.25-0.50 0.00-0.25 0.09 0.11 0.14 0.10
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