The Federal Open Market Committee [1] will meet again this week, with the group's Forecasts scheduled for release on Wednesday, June 6, at 2 p.m. ET, and Fed Chair Jerome Powell's press conference scheduled thereafter at 2:30 p.m. ET on Wednesday. While the FOMC could always surprise us, many industry experts [2] expect the Fed to announce another short-term interest rate hike.
The May meeting of the FOMC left interest rates unchanged [3], after having increased them previously in March.
“In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent,” the Fed said in a statement after the meeting. “The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to 2 percent inflation.”
The Central Bank had stated that it was targeting an inflation rate of 2 percent at the beginning of the year, and after the meeting, it said: “On a 12-month basis, both overall inflation and inflation for items other than food and energy have moved close to 2 percent.”
The FOMC forecast report covers GDP, the PCE price index, the unemployment rate, and forecasts of the next change in the Fed funds rate and the expected rate at the end of the next two years. The FOMC forecasts are compiled based on individual outlooks from each Fed governor and District president.
Here's what else is happening in The Week Ahead.
- CoreLogic Loan Performance Insights Report, Tuesday
- Fannie Mae Mortgage Lender Sentiment Survey, Tuesday, 7 a.m. EST
- Consumer Price Index, Tuesday, 8:30 a.m. EST
- MBA Mortgage Apps, Wednesday, 7 a.m. EST
- Consumer Sentiment Index, Friday, 10 a.m. EST