Fed Keeps Interest Rates Steady

The Federal Reserve left the Fed Funds Rate unchanged at the conclusion of their FOMC meeting today. The rate is currently a target range of 2.25% to 2.50%.

Banks maintained the Prime Rate at 5.50%.

 


Federal Reserve issues FOMC statement
For release at 2:00 p.m. EDT

Information received since the Federal Open Market Committee met in March indicates that the labor market remains strong and that economic activity rose at a solid rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Growth of household spending and business fixed investment slowed in the first quarter. On a 12-month basis, overall inflation and inflation for items other than food and energy have declined and are running below 2 percent. On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and […]

10 Year Treasuries at One Year Lows, Mortgage Rates Going Lower?

Yields on 10 Year Treasuries are at a one year low. On the heels of today’s FOMC statement and subsequent comments by Fed Chairman Powell, interest rates on Treasuries dropped, with the 10 Year yield nearing 2.50%. Should these levels be maintained or go even lower, mortgage rates are expected to drop further.

FOMC Keeps Interest Rates Steady

The Federal Reserve kept steady the Fed Funds Rate at the conclusion of their FOMC meeting today. The rate is currently a target range of 2.25% to 2.50%.

Banks maintained their same Prime Rates at 5.50%.

 


Press Release

March 20, 2019

Federal Reserve issues FOMC statement

Information received since the Federal Open Market Committee met in January indicates that the labor market remains strong but that growth of economic activity has slowed from its solid rate in the fourth quarter. Payroll employment was little changed in February, but job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Recent indicators point to slower growth of household spending and business fixed investment in the first quarter. On a 12-month basis, overall inflation has declined, largely as a result of lower energy prices; inflation for items other than food and energy remains near 2 percent. On balance, market-based measures of inflation compensation have remained low in recent months, and survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.

In determining the timing and size of future adjustments to the target […]

FOMC Keeps Interest Rates Steady

The Federal Reserve kept steady the Fed Funds Rate at the conclusion of their FOMC meeting today. The rate is currently a target range of 2.25% to 2.50%.

Banks maintained their same Prime Rates at 5.50%.

 


January 30, 2019

Federal Reserve issues FOMC statement

Information received since the Federal Open Market Committee met in December indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Job gains have been strong, on average, in recent months, and the unemployment rate has remained low. Household spending has continued to grow strongly, while growth of business fixed investment has moderated from its rapid pace earlier last year. On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Although market-based measures of inflation compensation have moved lower in recent months, survey-based measures of longer-term inflation expectations are little changed.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 2-1/4 to 2-1/2 percent. The Committee continues to view sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective as the most likely outcomes. In light of global economic and financial developments and muted inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.

In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to […]

Prime Rate Rises Again On Fed Move

After today’s .25% rate increase in the target range for the Fed Funds Rate, banks increased their Prime Rates with a corresponding increase from 5.25% to 5.50%. These changes are effective for most banks tomorrow, December 20, 2018.

In addition to interest rate increases for commercial loans and credit cards, expect rate increases in many consumer loans which are based upon the Prime Rate – for instance home equity loans, car loans, and personal loans.