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No rate hike expected following FOMC's two-day meeting
The Federal Open Market Committee (FOMC), the Federal Reserve's monetary policy-setting arm, begins a two-day meeting today. A rate hike is not expected following this meeting, but one is widely anticipated at the conclusion of the FOMC's Dec. 18-19 meeting.
The federal funds target rate was last increased by a quarter-point to a range of 2 to 2.25 percent during the FOMC's September meeting. This was the third rate hike this year.
According to minutes released after the September meeting, the Fed will continue with further gradual increases in the federal funds target rate in order to balance the potential risks of tightening monetary policy too quickly or too slowly.
NAFCU Chief Economist and Vice President of Research Curt Long said he expects the once-per-quarter pace of rate hikes will persist through at least mid-2019.
NAFCU's research team will issue a Macro Data Flash on the results of the FOMC's meeting Thursday.