Posted by: thepinetree on 03/15/2017 09:45 PM
Updated by: thepinetree on 03/15/2017 09:45 PM
Expires: 01/01/2022 12:00 AM
Fed Pushes Rate Up Another Quarter Point As Economy Strengthens
Washington, DC...Information received since the Federal Open Market Committee met in February indicates that the labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have firmed somewhat. Inflation has increased in recent quarters, moving close to the Committee's 2 percent longer-run objective; excluding energy and food prices, inflation was little changed and continued to run somewhat below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.
Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace, labor market conditions will strengthen somewhat further, and inflation will stabilize around 2 percent over the medium term. Near-term risks to the economic outlook appear roughly balanced. The Committee continues to closely monitor inflation indicators and global economic and financial developments.
In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 3/4 to 1 percent. The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a sustained return to 2 percent inflation.
In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee will carefully monitor actual and expected inflation developments relative to its symmetric inflation goal. The Committee expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run. However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.
The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction, and it anticipates doing so until normalization of the level of the federal funds rate is well under way. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.
Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Patrick Harker; Robert S. Kaplan; Jerome H. Powell; and Daniel K. Tarullo. Voting against the action was Neel Kashkari, who preferred at this meeting to maintain the existing target range for the federal funds rate.
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What???? Posted on: 2017-03-15 23:07:58By: Anonymous
Oh my God, will this recovery never end? What will liberals have to bitch about...the Donald's taxes, unsubstantiated Russian hacking of the Election, the recovery of Obamacare. Quick, put Rachel Maddow on he job, we need another good laugh.
Re: What???? Posted on: 2017-03-16 13:15:18By: Anonymous
Ever happened to the time Senor Wences got caught with that Kilo of Peruvian cocaine in his glove box?
It's funny how Senor Wences just sort of disappeared from the spotlight, like he fell-off the edge of the Earth, or something.
Re: What???? Posted on: 2017-03-16 14:25:26By: Anonymous
You (and we) are very lucky that we had adults managing our government when the Great Recession was at its worst. Obama and Yellen deserve a lot of credit for both the actual recovery and for remaining calm and giving confidence to the US and the world at large. Well done by both of them.
And we can all thank God that we didn't have the unstable, ignorant and emotional toddler Trump in charge of anything important during that period.
Re: What???? Posted on: 2017-03-16 20:44:33By: Anonymous
I guess that darned ol' recovery should have popped up its head sometimes in the last eight years, instead of waiting for old Thrumpenheimer to rattle its cage! C'mon Maddow, show us how Trumps tax returns were causing the economy to stay stagnamt for Omahama mama's tenure! Maybe a contingent of Ruskie spies were holding it hostage, their very sneaky you know, and very well hidden.
Price stability Posted on: 2017-03-17 06:28:01By: Anonymous
What a joke, price stability? Inflation is in run-away mode. When will these deniers start telling the truth? Government employment keeps ratcheting up salaries to compete with surrounding government's pay scales.
Calaveras County is a prime example of employment artificial hiring practices.