FOMC statement and press conference
Thoughts Regarding the FOMC Statement and Powell Press Conference
October 29, 2025
Two things unrelated to the characterization of current economic conditions pop up in today’s statement: The vote to cut confirm the 25-basis point interest rate cut was a spit one. Governor Miran as in September voted to reduce the interest rate by a larger 50 basis points, which was predictable. The possibility of some committee […] More
FOMC Statement and Press Conference
January 29, 2025
As expected, there was no change made in the 4.25-4.50% federal funds rate target, and balance sheet reduction will continue as previously indicated. Several tweeks were made to the FOMC’s characterization of U.S. economic trends: December’s statement called unemployment stabilized at a low level; this month joblessness is said to have move up but remains […] More
FOMC Chooses Larger 50-Basis Point Rate Cut
September 18, 2024
As in September 2007, January 2001, and October 1987, the Federal Open Market Committee chose to kick off an easing cycle with a 50-basis point reduction. The verdict was not unanimous. Governor Bowman preferred to cut the federal funds target only by 25 basis points. The new deposit rate range will be 4.75-5.0%. Bowman’s dissent […] More
FOMC Statement and Powell’s Press Conference
July 31, 2024
Today’s FOMC statement modified the prior statement of June 12 in two notable ways. First, labor market conditions depict less tightness, with job gains that were previously seen as strong being depicted now as having moderated and with the jobless rate still low but having moved up lately. Second and even more noteworthy, the last […] More
FOMC Signals Only One Likely Interest Rate Hike Next Quarter But Less Reduction in 2024 Than Presumed Earlier
September 20, 2023
FOMC members voted unanimously not to increase the federal funds rate at their sixth scheduled monetary policy review of 2023, and they signaled that at the end of this year the rate is likely to be only 25 basis points higher than now. The big surprise to Fed officials regarding how the U.S. economy has […] More
Speed of Fed Tightening Lifted
June 15, 2022
A lack of progress toward lower U.S. inflation and various measures showing upward drift in expected inflation convinced FOMC officials to boost the federal funds rate by 75 basis points today. This follows increases of 25 basis points in March and 50 bps in May, and the decision was taken in spite of a risk […] More
FOMC Statement and Press Conference
May 4, 2022
By a vote of 10-0, the Federal Open Market Committee increased the target range for the federal funds rate by the expected 50 basis points to 0.75-1.00%. An acknowledgment of negative GDP growth in 1Q 2022 is counter-balanced by assertions that personal consumption and business investment remain strong, an upgraded characterization of employment growth to […] More
FOMC Rate Hike of 25 Basis Points Draws One Dissent Favoring 50 BPS
March 16, 2022
Fed officials believe the federal funds will need to climb around 225 basis points additionally before stabilizing in late 2023. There are lots of uncertainties creating cross-currents. It’s not hard to imagine even more aggressive restraint will become necessary before sustainable inflation within the targeted goal is at hand. Projected growth this year was shaved […] More
FOMC Statement and Powell Press Conference
April 28, 2021
Nothing remarkable emerged from the Federal Reserve today. Monetary policy settings were not changed. The fed funds interest rate target of 0-0.25% was kept, and and so were the amounts of Treasury securities and MBS that the central bank will buy each month. Forward guidance was likewise retained as it’s been. Officials need to see […] More
Markets Not Reassured by Today’s Signals from the Fed
December 19, 2018
The FOMC statement accentuated the U.S. economy’s strong trends of domestic demand and labor market conditions. Comments about inflation were not modified. Concessions to recent jittery markets, President Trump’s criticism that raising interest rates is inappropriate, and the tilt in global data from mostly better-than-expected to primarily softer-than-expected results were slight and worded in a […] More
