In the past five Fed tightening cycles since 1990, long-term U.S. However, the bias is to the upside as new federal funds target range projections from the FOMC imply that policymakers expect additional rate hikes this year, with the median terminal rate now peaking around 5.6% compared to the 5.1% expected in March. The FOMC statement validates that the Committee will continue to take into account the cumulative tightening of monetary policy, the lags with which monetary policy may affect economic activity and inflation, and economic and financial developments in its decisions at each meeting. The Committee remains highly attentive to inflation risks. The extent of these effects is uncertain. Continued developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. ![]() Job gains have been robust in recent months and the unemployment rate has remained low. Recent indicators suggest that economic activity has continued to expand at a modest pace. The Federal Reserve (Fed) continues reducing its holdings of Treasury securities, agency debt, and agency mortgage-backed securities in 2023 in accordance with its statement released in May 2022. The FOMC stated that “holding the target rate steady at this meeting will allow it to assess additional information and its implications for monetary policy”. ![]() The Federal Open Market Committee (FOMC or the Committee) kept the federal funds rate unchanged at 5.00% – 5.25%.
0 Comments
Leave a Reply. |