FOMC statement and press conference

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

FOMC Preview

September 18, 2013

Federal Reserve policymakers have preparing markets to expect a reduction this month in the size of the central bank’s monthly $85 billion of long-term asset purchases, also known as quantitative stimulus (QE).  Chairman Bernanke initially floated the idea, contingent upon continuing improvement in the U.S. economy.  Although markets at first thought the monthly quota might […] More

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