The Federal Reserve kept the Fed Funds Rate unchanged at the conclusion of today’s FOMC meeting. The rate remains in a target range of 0.00% to 0.25%.
The FOMC previously indicated it will be “patient” before deciding to increase the Fed Funds rate and moving towards normalization of monetary policy. Today, that language was not in the current statement but they also indicated it was unlikely the Fed Funds Target Rate would increase in April. This summer still seems likely to see a rate hike, but it may not be as high as anticipated prior to today.
Release Date: March 18, 2015
For immediate release
Information received since the Federal Open Market Committee met in January suggests that economic growth has moderated somewhat. Labor market conditions have improved further, with strong job gains and a lower unemployment rate. A range of labor market indicators suggests that underutilization of labor resources continues to diminish. Household spending is rising moderately; declines in energy prices have boosted household purchasing power. Business fixed investment is advancing, while the recovery in the housing sector remains slow and export growth has weakened. Inflation has declined further below the Committee’s longer-run objective, largely reflecting declines in energy prices. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations have remained stable.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate. The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is anticipated to […]