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The Federal Open Market Committee (FOMC) begins its first two-day, monetary policy-setting meeting of the year today, which is not expected to end with a rate change.

The committee last lowered the federal funds target rate to the current range of 1.5 to 1.75 percent at the end of its October meeting, the third rate cut of 2019.

“Chairman Powell’s press conference will be eyed for indications in how the committee perceives various downside risks, particularly the coronavirus and its potential to impact the global economy in 2020," said NAFCU Chief Economist and Vice President Curt Long. "But the risks are not yet so clear that they would warrant a rate cut."

Following its December meeting, the committee left economic projections mostly unchanged, indicating that it anticipates rates to slowly rise in 2021 and 2022. Of note, more than half of the committee members projected that the federal funds rate will remain unchanged throughout 2020.

The FOMC will next meet Mar. 17-18; its tentative meeting schedule for 2020 can be viewed here. Stay tuned to NAFCU Today for a full recap of the meeting and a new FOMC Macro Data Flash report from the association's Research Team.