December 13, 2017

Fed raises rates 25 bps

The Federal Open Market Committee (FOMC), at the close of its two-day policy-setting meeting today, said it will raise the federal funds target rate by a quarter-point to a range of 1.25 to 1.5 percent.

"The FOMC's actions today were widely expected," said NAFCU Chief Economist and Vice President of Research Curt Long. "The committee struck a mostly positive note in its statement and appears poised for further rate hikes in the first half of 2018."

The committee's revised projections are three quarter-point rate hikes in 2018 and two to three in 2019.

The FOMC will meet again Jan. 30-31.

The FOMC last raised the federal funds target rate to a range of 1 to 1.25 percent in June.

NAFCU will also issue a NAFCU Macro Data Flash report to members today with more information on the FOMC's actions.