- Korea: Housing Price Index (Apr)
- US: Consumer Sentiment (Apr-final), GDP (Q1 Adv), ECI (Q1)
- Consumer Sentiment Detail (Apr-final)
- US: Selected NIPA Tables (Q1-Adv), Summary key Source Data (Q1)
- Canada: GDP by Industry (Feb), Industrial Product Prices (Mar)
- *Taiwan National House Price Indexes Rebased to 2016=100.*
- Euro area: HICP (Apr-Flash), ECB Survey of Professional Forecasters (Q2)
- Italy: CPI, HICP (Apr-Prelim)
- Brazil: Sao Paolo Capacity Utilization (Mar);Mexico: Debt (Mar);
- more updates...
Economy in Brief
U.S. Employment Cost Index Has Stronger Gain
Lifted by outsized rises in several industries, the employment cost index for civilian workers rose 0.8% (2.4% y/y) during Q1'17...
Chicago Purchasing Managers Index Strengthens
The Chicago Purchasing Managers Business Barometer Index for April increased to 58.3 from 57.7 in March...
EMU Money and Credit Perk Up
There is some noticeable acceleration in EMU money and credit growth...
Durable Goods Orders Improvement Moderates
New orders for durable goods rose 0.7% (4.5% y/y) during March...
U.S. Initial Claims for Unemployment Insurance Increase
Initial unemployment claims for unemployment insurance rose to 257,000 during the week ended April 22...
U.S. Pending Home Sales Ease
The National Association of Realtors (NAR) reported that pending home sales slipped 0.8% ((+0.8% y/y) during March...
by Tom Moeller December 14, 2016
At today's meeting of the Federal Open Market Committee, the targeted fed funds rate was raised to between 0.50% and 0.75%, from 0.25% to 0.50%. It was the highest target since the end of 2008. The FOMC indicated that an improved economic outlook likely would cause the fed funds rate to rise another 0.75 percentage points next year.
The Fed indicated that solid job gains and a lower unemployment rate have accompanied moderate growth in consumer spending. Business investment remains soft. It noted that inflation has increased this year, but remains below the 2% long-run objective.
Moderate economic growth was expected to continue, as labor markets strengthen further. Inflation is expected to rise to 2% as the effects of lower energy prices dissipate.
The Fed expects 2.1% growth in real GDP next year followed by 2.0% growth in 2018 and 1.9% in 2019. A 4.5% unemployment rate is expected for all three years. Core PCE inflation of 1.8% next year was expected to be followed by 2.0% growth in 2018 and 2019.
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.
|Federal Funds Rate Target||0.50%-0.75%||0.25%-0.50%||0.13%||0.09%||0.11%||0.14%|