Global| Sep 20 2017FOMC Leaves Rates Unchanged but Suggests Gradual Increases Ahead
by:Tom Moeller
|in:Economy in Brief
Summary
At today's meeting of the Federal Open Market Committee, the targeted federal funds rate was held steady in a range of 1.00% to 1.25%. This followed two rate increases earlier this year. Additionally, the Fed stated that "The [...]
At today's meeting of the Federal Open Market Committee, the targeted federal funds rate was held steady in a range of 1.00% to 1.25%. This followed two rate increases earlier this year.
Additionally, the Fed stated that "The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate." Nevertheless, the Fed stated that the rate will remain below its long-run level.
As the economy recovers from the effects of Hurricanes Harvey, Irma and Maria, economic growth is expected to continue at a moderate pace and labor markets will improve.
Price inflation is expected to pick up due to higher gasoline prices, then recede to the Fed's two percent objective.
The Fed also indicated that its balance sheet restructuring will begin next month.
Updated economic projections include GDP growth of 2.4% in 2017, 2.1% in 2018, 2.0% in 2019 and 1.8% in 2020. Core CPI growth of 1.5% is expected this year, 1.9% in 2018, then 2.0% in 2019 and 2020. An unemployment rate of 4.3% is projected this year, 4.1% in 2018 and 2019, then 4.2% in 2020.
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.
| Current | Last | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|
| Federal Funds Rate Target | 1.00%-1.25% | 1.00%-1.25% | 0.40% | 0.13% | 0.09% | 0.11% |
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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