Global| Nov 08 2018FOMC Holds Interest Rates Steady
by:Tom Moeller
|in:Economy in Brief
Summary
The Federal Open Market Committee voted unanimously at today's meeting to maintain the federal funds rate target in a range between 2.00% and 2.25%. The action was expected in the Action Economics Forecast Survey. The Fed indicated [...]
The Federal Open Market Committee voted unanimously at today's meeting to maintain the federal funds rate target in a range between 2.00% and 2.25%. The action was expected in the Action Economics Forecast Survey.
The Fed indicated that "further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity."
As indicated at the last meeting, the FOMC noted "that the labor market has continued to strengthen and that economic activity has been rising at a strong rate." Meanwhile, "overall inflation and inflation less food & energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance." In a change from earlier commentary, it was noted that business fixed investment growth had moderated from its rapid pace earlier in the year.
Consumer price inflation, both overall and excluding food & energy, continued to be seen at 2% through 2021. Longer-term inflation expectations were seen as steady.
The Fed continued to indicate that "risks to the economic outlook appear roughly balanced."
Updated economic projections were not offered at this meeting. Projections available at the September meeting included real GDP growth of 3.1% this year, 2.5% in 2019, 2.0% in 2020 and 1.8% in 2021, respectively. The expected core PCE inflation was 2.0% this year, then 2.1% thereafter. The civilian unemployment was seen at 3.7% this year, followed by 3.5% in 2019 and 2020, then 3.7% in 2021.
The press release for today's FOMC meeting can be found here.
The Action Economics Forecast Survey can be found in the AS1REPNA database. Haver's SURVEYS database contains the economic projections from the FOMC.
| Current | Last | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 2.00% - 2.25% | 2.00% - 2.25% | 1.00% | 0.40% | 0.13% | 0.09% |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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