Tag Archives: FOMC

The Fed votes on the fate of the federal funds rate once again today. What came of it this time?

It seems like every week Janet Yellen, Chair of the Federal Reserve Board of Governors is making news. Next week, the Federal Open Market Committee will meet for the fifth time in New York City. Will the Fed choose to raise interest rates for the second time in two months?

Janet Yellen will be in the limelight again on Wednesday and Thursday, this time testifying before both the House and the Senate. Will The Fed say more of the same, or will her testimony bring more changes?

The Federal Open Market Committee voted Wednesday to raise interest rates for the second time this year to 1-1.25 percent, a move that was widely expected amongst economists and industry professionals and described as “prudent” by FOMC Board of Governors Chair Janet Yellen. Back in March, they voted to increase the rate a modest quarter of a point to maintain the Fed’s goal of maximum employment and market stability. The FOMC is of the opinion that waiting too long to scale back accommodations could potentially cause a rapid increase in rates, which could disrupt the market and send the economy into another recession.

On Wednesday the Federal Open Market Committee is set to finish its June meeting, and it is widely expected that they will raise interest rates in order to stabilize the economy, despite inflation holding at around 2 percent. In May, when they last met, members of the board chose to keep interest rates at their current level. What might an increase mean for mortgage interest rates? One expert believes it might not impact the mortgage market at all.

The Federal Open Market Committee opted to keep the federal funds rate as-is during its May meeting. The FOMC raised the rate in March from 0.75 to 1 percent. It was largely expected that the FOMC would raise rates at least two more times over the course of 2017.

According to the Federal Open Market Committee, the economy is expected to expand at a moderate pace, which could spark a rate increase sooner than anticipated. This question will be answered at the FOMC meeting this week.

In his first address to Congress at the end of February, President Trump reiterated his commitment to growing U.S. jobs. The most recent report from the Bureau of Labor Statistics shows that during Trump’s first-full month as president employment increased by 235,000 jobs.

The Federal Open Market Committee released their July 26-27, 2016 minutes noting the changes seen in financial markets and open market operations as well as reviewing the economic state, financial state, and economic outlook.

The third meeting of the year for the Federal Open Market Committee (FOMC) will take place Tuesday and Wednesday, April 26 and 27. What is the consensus around the policy decision that will come out of the meeting?