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| Fed Expected to Hold Rates During July Meeting |
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The Federal Open Market Committee (FOMC) – the Fed's monetary-policy setting arm - begins its July meeting today and is expected to hold the federal funds target rate range at its current 0 percent to 0.25 percent for the foreseeable future. The rate has remained at its current level since March 2020.
Federal Reserve Chairman Jerome Powell has previously outlined three standards that must be met before the FOMC will consider raising rates:
Federal Reserve Chairman Jerome Powell has previously outlined three standards that must be met before the FOMC will consider raising rates:
• inflation has reached 2 percent and stayed at that level for some time;
• longer term inflation expectations remain well anchored at 2 percent; and
• the labor market has sufficiently recovered.
Minutes from the committee's last meeting, held in June, revealed building economic optimism, with a vast majority of participants revising up their predictions for real GDP growth this year – compared to the projections they submitted in March – citing stronger consumer demand and improvements in vaccination rates as the primary reasons.
The FOMC's two-day meeting will conclude tomorrow; the committee is expected to next meet Sept. 21-22.
Copyright 2021. NAFCU. (link) |
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