No surprises expected from FOMC today
Oct. 30, 2013 – The Federal Open Market Committee is due to release a statement on results of its two-day policy-setting meeting today, but NAFCU Chief Economist David Carrier said he is expecting no marked change in current policy.
“The Fed is likely to conclude that the economy is still too weak and the future too uncertain to start tapering,” Carrier said.
The Fed has been purchasing agency mortgage-backed securities at a pace of $40 billion per month and longer-term Treasury securities at a pace of $45 billion per month. In September, the FOMC said it “will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability.”
The committee, in September, said the federal funds rate target, set at a range of 0 to 0.25 percent since December 2008, is appropriate as long as unemployment is above 6.5 percent, near-term inflation is projected to be no more than 2.5 percent and long-term inflation expectations continue to be well anchored.