FOMC meeting 2 PM
Released On 9/21/2016 2:00:00 PM
Prior Consensus Consensus Range
Federal Funds Rate - Target Level 0.25 to 0.50 % 0.375 % 0.25 % to 0.50 %
Recent History Of This Indicator
The Federal funds rate target has been unchanged at a midpoint of 0.375 percent between a range 0.25 to 0.50 percent since December last year, when the FOMC launched what was expected to be a series of rate hikes through this year. Recent growth data have been solid, led by employment and including consumer spending, but global demand has been soft as has business investment especially in the energy sector. Inflation pressures have been minimal though the latest Beige Book, prepared in advance for this meeting, did cite emerging evidence of wage pressures. At the last FOMC back in July, the committee voted 9 to 1 to keep rates unchanged.
Definition
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve. It determines short-term interest rates in the U.S. when it decides the overnight rate that banks pay each other for borrowing reserves when a bank has a shortfall in required reserves. This rate is the fed funds rate. The FOMC also determines whether the Fed should add or subtract liquidity in credit markets separately from that related to changes in the fed funds rate. The Fed announces its policy decision (typically whether to change the fed funds target rate) at the end of each FOMC meeting. This is the FOMC announcement. The announcement also includes brief comments on the FOMC's views on the economy and how many FOMC members voted for and how many voted against the policy decision. Since the last recession, the statement also includes information on Fed purchases of assets, so-called "quantitative easing", which affects longer-term interest rates. Also, a key part of the announcement is guidance on potential changes in policy rates or asset purchases. Why Investors Care
The Fed closely monitors the core PCE price index to indicate whether or not policy is approximately correct, overly accommodative, or too restrictive. The PCE price index is preferred to the CPI because it is more closely aligned to the cost of living than the CPI (which measures a fixed basket of goods & services.) This chart covers monthly data and the fed funds target rate reflects the monthly average. As such, it will not correspond to the most recent fed funds rate target announced by the Fed.
Data Source: Haver Analytics
Released On 9/21/2016 2:00:00 PM
Prior Consensus Consensus Range
Federal Funds Rate - Target Level 0.25 to 0.50 % 0.375 % 0.25 % to 0.50 %
Recent History Of This Indicator
The Federal funds rate target has been unchanged at a midpoint of 0.375 percent between a range 0.25 to 0.50 percent since December last year, when the FOMC launched what was expected to be a series of rate hikes through this year. Recent growth data have been solid, led by employment and including consumer spending, but global demand has been soft as has business investment especially in the energy sector. Inflation pressures have been minimal though the latest Beige Book, prepared in advance for this meeting, did cite emerging evidence of wage pressures. At the last FOMC back in July, the committee voted 9 to 1 to keep rates unchanged.
Definition
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve. It determines short-term interest rates in the U.S. when it decides the overnight rate that banks pay each other for borrowing reserves when a bank has a shortfall in required reserves. This rate is the fed funds rate. The FOMC also determines whether the Fed should add or subtract liquidity in credit markets separately from that related to changes in the fed funds rate. The Fed announces its policy decision (typically whether to change the fed funds target rate) at the end of each FOMC meeting. This is the FOMC announcement. The announcement also includes brief comments on the FOMC's views on the economy and how many FOMC members voted for and how many voted against the policy decision. Since the last recession, the statement also includes information on Fed purchases of assets, so-called "quantitative easing", which affects longer-term interest rates. Also, a key part of the announcement is guidance on potential changes in policy rates or asset purchases. Why Investors Care
The Fed closely monitors the core PCE price index to indicate whether or not policy is approximately correct, overly accommodative, or too restrictive. The PCE price index is preferred to the CPI because it is more closely aligned to the cost of living than the CPI (which measures a fixed basket of goods & services.) This chart covers monthly data and the fed funds target rate reflects the monthly average. As such, it will not correspond to the most recent fed funds rate target announced by the Fed.
Data Source: Haver Analytics
