Newsroom
June 15, 2016
FOMC leaves interest rate and policy unchanged
The Federal Open Market Committee Wednesday said it is leaving the federal funds target rate unchanged at a range of 0.25 to 0.5 percent and is making no policy changes this month.
The FOMC released this policy statement at the close of its two-day meeting Wednesday.
"The decision to leave rates the same was widely expected, especially after the disappointing job numbers in May," said NAFCU Chief Economist and Director of Research Curt Long. "July is still a possibility if employment data is better this month, but it is more likely the committee will now wait until the third quarter or later."
In its revised forecast, the committee indicated that it anticipates a more gradual pace of rate normalization than previously estimated. The median forecast for the fed funds rate was 0.9 percent at the end of this year, 1.6 percent by year end 2017, and 2.4 percent in 2018.
The committee's median projected federal funds rate decreased for 2017 and 2018, but its projections for 2016 still imply two rate increases this year.
The committee will meet for another two-day policy-setting session July 26-27.
Long noted in an interview with Bankrate earlier this week that the FOMC is also eyeing economic instability abroad as it waits to act on a rate hike.
NAFCU's research team also released a Macro Data Flash on the FOMC meeting.
The FOMC raised the federal funds target rate to a range of 0.25 to 0.5 percent in December.
The FOMC released this policy statement at the close of its two-day meeting Wednesday.
"The decision to leave rates the same was widely expected, especially after the disappointing job numbers in May," said NAFCU Chief Economist and Director of Research Curt Long. "July is still a possibility if employment data is better this month, but it is more likely the committee will now wait until the third quarter or later."
In its revised forecast, the committee indicated that it anticipates a more gradual pace of rate normalization than previously estimated. The median forecast for the fed funds rate was 0.9 percent at the end of this year, 1.6 percent by year end 2017, and 2.4 percent in 2018.
The committee's median projected federal funds rate decreased for 2017 and 2018, but its projections for 2016 still imply two rate increases this year.
The committee will meet for another two-day policy-setting session July 26-27.
Long noted in an interview with Bankrate earlier this week that the FOMC is also eyeing economic instability abroad as it waits to act on a rate hike.
NAFCU's research team also released a Macro Data Flash on the FOMC meeting.
The FOMC raised the federal funds target rate to a range of 0.25 to 0.5 percent in December.
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