FOMC MEETING FOR CALENDAR YEAR 2014
Federal Open Market Committee Meeting (January 28-29, 2014)
In Ben Bernanke's last meeting as Federal Reserve Chairman, Federal Reserve policy makers on January 29, 2014 decided, at the end of a two-day session, to pare the bond buyback program further by another $10 billion to $65 billion per month starting from February 2014. The move was widely anticipated as the U.S. economy in recent months had shown of sustained improvement. However, Fed's action of tapering off the bond buying program in recent months created a sense of uncertainty in the emerging markets, leading to capital flight from these economies to the U.S. as Fed's action created the ground for higher interest rates in the U.S., thus taking away the excuse for keeping money in the emerging markets for higher returns, and weakening of their currencies. Central banks from India to South Africa to Turkey raised interest rates to prop up their currency, fight inflation and capital flight from their countries. However, policy makers left the key federal funds rate to near zero during January 29-29, 2014, FOMC meeting. Ben Bernanke will end his historic eight-year tenure at the helm of Fed on January 31, 2014, and Janet Yellen, current Vice Chair of the Fed, will become the first female head of the most powerful financial institution of the world on February 1, 2014.
Federal Open Market Committee Meeting (March 18-19, 2014)
The first open market committee meeting under the leadership of Janet Yellen took no surprise move as it announced whittling down the bond buying program by an additional $10 billion to $55 billion per month. However, the key federal funds rate was left intact near zero. Federal Reserves Chairman Janet Yellen, addressing the media for the first time as Fed chief, said on March 19, 2014 that the Fed would like to keep the near zero federal funds rate for a "considerable" length of time given the sluggish recovery of the economy and low inflation rate. However, when pressed what she meant by "considerable" length, Yellen responded it might be six months or so. Wall Street read her response in the wrong way, and stock markets fell sharply. Yellen also emphasized on two markers that would primarily dictate Fed's future decision for interest rate. The first marker is the usual inflation rate, and Fed has a target threshold of 2 percent for inflation rate. The second marker is the job market. On this second marker, Yellen made it clear during her first press conference as Federal Reserves head that the Fed would not be dictated solely by the unemployment rate as it doesn't capture the full picture of the job market anymore.
Federal Open Market Committee Meeting (April 23-24, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion.
Federal Open Market Committee Meeting (June 17-18, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $35 billion beginning in July.
Federal Open Market Committee Meeting (July 29-30, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $25 billion beginning in August. At this pace, Federal Reserve will stop its bond buying program in October.
Federal Open Market Committee Meeting (September 16-17, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $15 billion beginning in next month. Appearing before journalists, Federal Reserve Chairwoman Janet Yellen said on September 17, 2014 that there were still "too many people who want jobs cannot find them, too many who are working part-time but prefer full-time work, and too many who are not searching for a job, but would be if the labor market were stronger", a candid assessment that reflects the current state of economic condition with steady, but slow, recovery of job market. The language in the Fed report also stated that the near-zero interest rate would stay for a "considerable period".
Federal Open Market Committee Meeting (October 28-29, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and officially ended the bond-buying program, known as Quantitative Easing.
Federal Open Market Committee Meeting (December 16-17, 2014)
At the last meeting of the year, Feds policymakers decided to stay put on any rate hike measure despite a dissenting vote by Richard Fisher, Dallas Feds President, his ninth dissenting vote since 2005 and his last one as he will retire on March 19, 2015. The Federal Reserve Chairwoman Janet Yellen, addressing the reporters at the end of two-day meet, said on December 17, 2014 that there won't be any interest rate hike in the first quarter of 2015 given a sputtering European economy, less than stellar projected growth in developing world and collapsing oil prices. Yellen's assurance that Fed would be "patient" in raising the interest rates came as a sigh of relief to many inflation doves, but disappointment to the most of the inflation hawks.
FOMC MEETING FOR CALENDAR YEAR 2015
Federal Open Market Committee Meeting (January 27-28, 2015)
If outside analysts were seeking any clarity of Fed action on the interest rate, they were disappointed as Fed policy makers played it safe during their first open market committee meeting in 2015. At the end of the two-day open market meeting on January 28, 2015, Feds policymakers left the key federal funds rate intact. Now, most of the analysts consider any potential increase in overnight federal funds rate to take place in June 2015.
Federal Open Market Committee Meeting (March 17-18, 2015)
The Federal Reserve policy makers concluded their second two-day open market committee meeting this year on March 18, 2015. The meeting was held in the backdrop of
* Tumbling oil prices
* Rising US dollars
* Slowing global economy
* Subpar inflation outlook
Although the statement issued by the Federal Reserve dropped the much vaunted term of "patient" in describing the time of raising the federal funds rate, which had stayed at record low since the beginning of the recession, the Fed Chairwoman Janet Yellen, addressing the reporters after the open market committee meeting, made it clear that dropping the term "patient" didn't imply that the Fed policymakers would be impatient in raising the interest rates.
Federal Open Market Committee Meeting (April 28-29, 2015)
The Federal Reserve policy makers concluded their third two-day open market committee meeting this year on April 29, 2015. The Feds policymakers sent no clear message of any interest rate hike in the summer in the context of slowdown in
* US growth in recent months
* Business investment
* US exports
Federal Open Market Committee Meeting (June 16-17, 2015)
The Federal Reserve policy makers concluded their fourth two-day open market committee meeting this year on June 17, 2015. Addressing a press conference, Chairwoman Janet Yellen noted an improving economy, consumer spending and housing market, but didn't hint when the policymakers would make the first move to raise interest rates for the first time in almost seven-and-half years.
Feds Policymakers More Confident after Open Market Committee Meeting (July 28-29, 2015)
The Federal Reserve policymakers voted unanimously to keep the target interest rate, so-called Federal Funds Rate, intact near zero during the two-day July 2015 federal open market committee meeting that concluded on July 29, 2015. However, the Feds statement on the health of nation's economy got more optimistic as it noted that the:
* U.S. economy had expanded "moderately"
* Recent job gains were solid
* Unemployment rate remained low
* Risk to its outlook for the economy was "nearly balanced"
Feds Policymakers Stay Put on Interest Rates in September Meeting (September 16-17, 2015)
The Federal Reserve policymakers voted 16-1 to keep the target interest rate, so-called Federal Funds Rate, intact near zero during the two-day September 2015 federal open market committee meeting that concluded on September 17, 2015. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, marked the first dissenting vote this year by supporting a rate increase. Later addressing a news conference, Feds Chairwoman Janet Yellen called the decision not to raise the rate as waiting out for more evidence of firming up of the domestic economy in the midst of overseas weaknesses that deserved a "close watching".
Feds Policymakers Stay Put on Interest Rates in October Meeting (October 27-28, 2015)
The Federal Reserve policymakers during their two-day (October 27-28, 2015) open market committee meeting decided to keep the target interest rate, so-called Federal Funds Rate, intact near zero. The decision was influenced by a variety of factors, including:
* Subpar inflation
* Weak domestic job growth
* Weak global economy
However, for the first time, Feds policymakers hinted that they might move toward hiking the rate during December 2015 policy meeting.
Feds Policymakers Hike Rates as Expected in the Last Meeting (December 15-16, 2015)
The Federal Reserve policymakers concluded the December (December 15-16, 2015) open market committee meeting by hiking the overnight lending rate, so-called Federal Funds Rate, by a quarter percentage point. As a result, the federal funds rate will be in the range of 0.25 to 0.50 percentage point. The rate hike decision was made unanimously by 9-0 vote, and Federal Reserve Chairwoman Janet Yellen said at a new conference on December 16, 2015 that the rate hike was the confirmation of policymakers' "confidence in the U.S. economy". In a statement issued as a policy update, Feds put a rate target of around 1 percentage point by the end of 2016. Also, the rate hike is also seen as a strategic monetary move to have an added leverage Feds policymakers want to have in their arsenal to fight against any future recession.
FOMC MEETING FOR CALENDAR YEAR 2016
Federal Open Market Committee Meeting (January 26-27, 2016)
Roughly six weeks after ending a near-zero interest rate policy, Federal Reserve policymakers are in an unchartered territory with a host of issues such weakening global economy, falling U.S. stock markets, swelling inventory levels, shrinking manufacturing and political uncertainty lurking in the backdrop. Although a minority of market analysts blamed Fed's ending of 9-year, near-zero interest rate policy as one of the reasons for falling stock markets in the new year, Fed is unlikely to reverse its course of gradually increasing the overnight lending rate. At its first open market committee meeting held January 26-27, 2016, Federal Reserve's policymakers stayed put on federal funds rate.
Second Federal Open Market Committee Meeting of the Year (March 15-16, 2016)
Market pros who were predicting last year about four interest rate hikes in 2016 scaled down their estimates almost by 50 percent due to sustained depressed commodity prices, a weakening global economy and growing uncertainty in the financial markets. Federal Reserve policymakers in their second federal open market committee (FOMC) meeting (March 15-16, 2016) left federal funds rate unchanged.
Third Federal Open Market Committee Meeting of the Year (April 26-27, 2016)
The message from the Federal Reserve policymakers was mixed amid a key benchmark rate--federal funds rate--being left unchanged. At the end of a two-day federal open market committee meeting on April 27, 2016, the Feds statement underscored an expanding job market although there were signs of weakness in economic activities. Feds also said that personal incomes rose amid uneasiness among consumers reflected by weak household spending.
Feds Policymakers Leave Interest Rate Unchanged (June 14-15, 2016)
Federal Reserve's Open Market Committee at its fourth meeting of the year left the key benchmark interest rate intact. During its two-day meeting on June 14, 2016 and June 15, 2016, policymakers had to sift through a conflicting, if not confusing, array of data such as tepid job growth accompanied by strong consumer spending and sluggish business investment with subpar economic expansion. Also, the incoming Brexit vote on June 23, 2016 added another dimension of uncertainty.
Feds Policymakers Leave Interest Rate Unchanged (July 26-27, 2016)
Federal Reserve's Open Market Committee at its fifth meeting of the year left the key benchmark interest rate intact. However, overall sentiment was that of a cautious optimism because of a recovering U.S. job market and mostly rational approach by all parties concerned on how to negotiate and navigate Britain's exit from the European Union.
No Hike in Rates by Policy Makers at the September Meeting (Sep 20-21, 2016)
Federal Reserves policymakers left the federal funds rate untouched after two days of meeting on September 20 and September 21, 2016. The statement issued at the conclusion of the sixth FOMC meeting of the year acknowledged a growing job market and improving economy with "a balanced risk" to the economy. Fed also forecast its estimate for nation's growth at 1.8 percent this year and 2 percent for both 2018 and 2019. However, for the first time in nearly two years as well as since Janet Yellen has become the Chairwoman of the Federal Reserve, three members of the Open Market Committee broke ranks with majority decision to hold the key interest rate intact. These three heads of Fed's regional banks--Esther George of Kansas City, Loretta Mester of Cleveland and Eric Rosengren of Boston--argued, without success, for increasing the federal funds rate.
Last Meeting of Feds Policymakers before the Election Leaves Interest Rate Unchanged
Federal Open Market Committee held its last meeting before the November 8, 2016, polls on November 1 and November 2, and left the interest rates intact.
Feds Raise Key Interest Rate before the Yearend
For the second time in a decade, Federal Reserve policymakers, at the end of a two-day Federal Open Market Committee meeting, on December 14, 2016 decided to hike the federal funds rate by 25 basis points.
FOMC MEETING FOR CALENDAR YEAR 2017
Federal Open Market Committee Meeting (January 31-February 1, 2017)
Federal Reserves policymakers held the interest rate intact in their first open market committee meeting in the Trump era.
Federal Open Market Committee Meeting (March 14-15, 2017)
Federal Reserves policymakers raised the federal funds rate by a 25 basis point.
Federal Open Market Committee Meeting (May 2-3, 2017)
Federal Reserves policymakers met for a two-day open market committee session on May 2 and May 3, 2017 to take stock of the economic and employment situation, and decided to stay put another hike in interest rate. However, addressing the correspondents after the two-day meeting was over on May 3, 2017, the Federal Reserve Chair Janet Yellen reiterated the previous guidance of at least two more rate hikes to come.
Federal Open Market Committee Meeting (June 13-14, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on June 13 and June 14, and took the much anticipated step of gradual increment in Federal Funds rate. The raise of 25 basis point will elevate the key rate to 1 percent or above for the first time since the Great Recession of 2008. The Federal Funds rate will now move between 1 percent and 1.25 percent.
Federal Open Market Committee Meeting (July 25-26, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on July 25 and July 26, and left the federal funds rate intact.
Federal Open Market Committee Meeting (September 19-20, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on September 19 and September 20, and left the federal funds rate intact. However, the policymakers hinted that they might raise the Federal Funds Rate for the third time this year in their December meeting. The most important decision, though, from the September 19-20, 2017, FOMC meeting was to begin gradual roll-off of nearly $4.5 trillion in treasury and mortgage securities the Federal Reserve had acquired during the peak of recession. Under the Fed's plan:
* The offloading of nearly $4.5 trillion will be gradual
* $10 billion--$6 billion in treasury and $4 billion in mortgage bonds--will be put off the balance sheet every month, beginning in October 2017
* Every quarter for the next one year--January 2018, April 2018, July 2018 and October 2018--the offload amount is to increase by $10 billion until it reaches $50 billion per month
* Beyond October 2018, the offload amount is proposed to stay steady at $50 billion each month.
President Trump Names His Choice to Lead Federal Reserve
President Donald Trump on November 2, 2017 named Jeremy Powell, a centrist Republican and member of the Federal Reserve board of governors since 2012, to lead the Federal Reserve after the incumbent chair Janet Yellen's term would be over in February 2018. By choosing Powell, Trump had selected someone with deep expertise in the financial industry who was a lawyer by training and investor banker by trade. As Fed Chair, a position that is, according to many, the second most powerful post in the U.S. government, Powell will be the voice of an institution that is charged with keeping the economy on track by adjusting interest rates that influence the decisions of all Americans. Janet Yellen will become the first Federal Reserve head not to be re-nominated for the second term since G. William Miller in 1979. Former Fed Chairmen Paul Volcker, Alan Greenspan and Ben Bernanke were all nominated by presidents from one party and re-nominated for the second term by presidents from the other political party. On her watch, the Federal Reserve halted a controversial bond-buying program, lifted interest rates off zero, and began to unload gradually its $4.5 trillion balance sheet.
FOMC MEETING FOR CALENDAR YEAR 2018
Federal Open Market Committee Meeting (January 30-31, 2018)
During the last meeting of Federal Reserve's policy meeting (January 30-31, 2018) under the leadership of outgoing chair Janet Yellen, policymakers stood pat and held the interest rates steady. Last week, U.S. Senate confirmed Trump pick Jerome Powell by 84-13 votes as the new Chairman of Federal Reserve.
Federal Open Market Committee Meeting (March 20-21, 2018)
Federal Reserve Banks's open market committee met on March 20 and March 21 for its second interest rate-setting panel's second meeting this year to take stock of economy, job market, inflation and interest rate. Policymakers raised the benchmark federal funds rate by 25 basis points to a range of 1.50 percent to 1.75 percent.
Federal Open Market Committee Meeting (January 28-29, 2014)
In Ben Bernanke's last meeting as Federal Reserve Chairman, Federal Reserve policy makers on January 29, 2014 decided, at the end of a two-day session, to pare the bond buyback program further by another $10 billion to $65 billion per month starting from February 2014. The move was widely anticipated as the U.S. economy in recent months had shown of sustained improvement. However, Fed's action of tapering off the bond buying program in recent months created a sense of uncertainty in the emerging markets, leading to capital flight from these economies to the U.S. as Fed's action created the ground for higher interest rates in the U.S., thus taking away the excuse for keeping money in the emerging markets for higher returns, and weakening of their currencies. Central banks from India to South Africa to Turkey raised interest rates to prop up their currency, fight inflation and capital flight from their countries. However, policy makers left the key federal funds rate to near zero during January 29-29, 2014, FOMC meeting. Ben Bernanke will end his historic eight-year tenure at the helm of Fed on January 31, 2014, and Janet Yellen, current Vice Chair of the Fed, will become the first female head of the most powerful financial institution of the world on February 1, 2014.
Federal Open Market Committee Meeting (March 18-19, 2014)
The first open market committee meeting under the leadership of Janet Yellen took no surprise move as it announced whittling down the bond buying program by an additional $10 billion to $55 billion per month. However, the key federal funds rate was left intact near zero. Federal Reserves Chairman Janet Yellen, addressing the media for the first time as Fed chief, said on March 19, 2014 that the Fed would like to keep the near zero federal funds rate for a "considerable" length of time given the sluggish recovery of the economy and low inflation rate. However, when pressed what she meant by "considerable" length, Yellen responded it might be six months or so. Wall Street read her response in the wrong way, and stock markets fell sharply. Yellen also emphasized on two markers that would primarily dictate Fed's future decision for interest rate. The first marker is the usual inflation rate, and Fed has a target threshold of 2 percent for inflation rate. The second marker is the job market. On this second marker, Yellen made it clear during her first press conference as Federal Reserves head that the Fed would not be dictated solely by the unemployment rate as it doesn't capture the full picture of the job market anymore.
Federal Open Market Committee Meeting (April 23-24, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion.
Federal Open Market Committee Meeting (June 17-18, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $35 billion beginning in July.
Federal Open Market Committee Meeting (July 29-30, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $25 billion beginning in August. At this pace, Federal Reserve will stop its bond buying program in October.
Federal Open Market Committee Meeting (September 16-17, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and reduced the monthly bond purchase volume by an additional $10 billion to $15 billion beginning in next month. Appearing before journalists, Federal Reserve Chairwoman Janet Yellen said on September 17, 2014 that there were still "too many people who want jobs cannot find them, too many who are working part-time but prefer full-time work, and too many who are not searching for a job, but would be if the labor market were stronger", a candid assessment that reflects the current state of economic condition with steady, but slow, recovery of job market. The language in the Fed report also stated that the near-zero interest rate would stay for a "considerable period".
Federal Open Market Committee Meeting (October 28-29, 2014)
Federal Reserve policymakers left the overnight federal funds rate intact and officially ended the bond-buying program, known as Quantitative Easing.
Federal Open Market Committee Meeting (December 16-17, 2014)
At the last meeting of the year, Feds policymakers decided to stay put on any rate hike measure despite a dissenting vote by Richard Fisher, Dallas Feds President, his ninth dissenting vote since 2005 and his last one as he will retire on March 19, 2015. The Federal Reserve Chairwoman Janet Yellen, addressing the reporters at the end of two-day meet, said on December 17, 2014 that there won't be any interest rate hike in the first quarter of 2015 given a sputtering European economy, less than stellar projected growth in developing world and collapsing oil prices. Yellen's assurance that Fed would be "patient" in raising the interest rates came as a sigh of relief to many inflation doves, but disappointment to the most of the inflation hawks.
FOMC MEETING FOR CALENDAR YEAR 2015
Federal Open Market Committee Meeting (January 27-28, 2015)
If outside analysts were seeking any clarity of Fed action on the interest rate, they were disappointed as Fed policy makers played it safe during their first open market committee meeting in 2015. At the end of the two-day open market meeting on January 28, 2015, Feds policymakers left the key federal funds rate intact. Now, most of the analysts consider any potential increase in overnight federal funds rate to take place in June 2015.
Federal Open Market Committee Meeting (March 17-18, 2015)
The Federal Reserve policy makers concluded their second two-day open market committee meeting this year on March 18, 2015. The meeting was held in the backdrop of
* Tumbling oil prices
* Rising US dollars
* Slowing global economy
* Subpar inflation outlook
Although the statement issued by the Federal Reserve dropped the much vaunted term of "patient" in describing the time of raising the federal funds rate, which had stayed at record low since the beginning of the recession, the Fed Chairwoman Janet Yellen, addressing the reporters after the open market committee meeting, made it clear that dropping the term "patient" didn't imply that the Fed policymakers would be impatient in raising the interest rates.
Federal Open Market Committee Meeting (April 28-29, 2015)
The Federal Reserve policy makers concluded their third two-day open market committee meeting this year on April 29, 2015. The Feds policymakers sent no clear message of any interest rate hike in the summer in the context of slowdown in
* US growth in recent months
* Business investment
* US exports
Federal Open Market Committee Meeting (June 16-17, 2015)
The Federal Reserve policy makers concluded their fourth two-day open market committee meeting this year on June 17, 2015. Addressing a press conference, Chairwoman Janet Yellen noted an improving economy, consumer spending and housing market, but didn't hint when the policymakers would make the first move to raise interest rates for the first time in almost seven-and-half years.
Feds Policymakers More Confident after Open Market Committee Meeting (July 28-29, 2015)
The Federal Reserve policymakers voted unanimously to keep the target interest rate, so-called Federal Funds Rate, intact near zero during the two-day July 2015 federal open market committee meeting that concluded on July 29, 2015. However, the Feds statement on the health of nation's economy got more optimistic as it noted that the:
* U.S. economy had expanded "moderately"
* Recent job gains were solid
* Unemployment rate remained low
* Risk to its outlook for the economy was "nearly balanced"
Feds Policymakers Stay Put on Interest Rates in September Meeting (September 16-17, 2015)
The Federal Reserve policymakers voted 16-1 to keep the target interest rate, so-called Federal Funds Rate, intact near zero during the two-day September 2015 federal open market committee meeting that concluded on September 17, 2015. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, marked the first dissenting vote this year by supporting a rate increase. Later addressing a news conference, Feds Chairwoman Janet Yellen called the decision not to raise the rate as waiting out for more evidence of firming up of the domestic economy in the midst of overseas weaknesses that deserved a "close watching".
Feds Policymakers Stay Put on Interest Rates in October Meeting (October 27-28, 2015)
The Federal Reserve policymakers during their two-day (October 27-28, 2015) open market committee meeting decided to keep the target interest rate, so-called Federal Funds Rate, intact near zero. The decision was influenced by a variety of factors, including:
* Subpar inflation
* Weak domestic job growth
* Weak global economy
However, for the first time, Feds policymakers hinted that they might move toward hiking the rate during December 2015 policy meeting.
Feds Policymakers Hike Rates as Expected in the Last Meeting (December 15-16, 2015)
The Federal Reserve policymakers concluded the December (December 15-16, 2015) open market committee meeting by hiking the overnight lending rate, so-called Federal Funds Rate, by a quarter percentage point. As a result, the federal funds rate will be in the range of 0.25 to 0.50 percentage point. The rate hike decision was made unanimously by 9-0 vote, and Federal Reserve Chairwoman Janet Yellen said at a new conference on December 16, 2015 that the rate hike was the confirmation of policymakers' "confidence in the U.S. economy". In a statement issued as a policy update, Feds put a rate target of around 1 percentage point by the end of 2016. Also, the rate hike is also seen as a strategic monetary move to have an added leverage Feds policymakers want to have in their arsenal to fight against any future recession.
FOMC MEETING FOR CALENDAR YEAR 2016
Federal Open Market Committee Meeting (January 26-27, 2016)
Roughly six weeks after ending a near-zero interest rate policy, Federal Reserve policymakers are in an unchartered territory with a host of issues such weakening global economy, falling U.S. stock markets, swelling inventory levels, shrinking manufacturing and political uncertainty lurking in the backdrop. Although a minority of market analysts blamed Fed's ending of 9-year, near-zero interest rate policy as one of the reasons for falling stock markets in the new year, Fed is unlikely to reverse its course of gradually increasing the overnight lending rate. At its first open market committee meeting held January 26-27, 2016, Federal Reserve's policymakers stayed put on federal funds rate.
Second Federal Open Market Committee Meeting of the Year (March 15-16, 2016)
Market pros who were predicting last year about four interest rate hikes in 2016 scaled down their estimates almost by 50 percent due to sustained depressed commodity prices, a weakening global economy and growing uncertainty in the financial markets. Federal Reserve policymakers in their second federal open market committee (FOMC) meeting (March 15-16, 2016) left federal funds rate unchanged.
Third Federal Open Market Committee Meeting of the Year (April 26-27, 2016)
The message from the Federal Reserve policymakers was mixed amid a key benchmark rate--federal funds rate--being left unchanged. At the end of a two-day federal open market committee meeting on April 27, 2016, the Feds statement underscored an expanding job market although there were signs of weakness in economic activities. Feds also said that personal incomes rose amid uneasiness among consumers reflected by weak household spending.
Feds Policymakers Leave Interest Rate Unchanged (June 14-15, 2016)
Federal Reserve's Open Market Committee at its fourth meeting of the year left the key benchmark interest rate intact. During its two-day meeting on June 14, 2016 and June 15, 2016, policymakers had to sift through a conflicting, if not confusing, array of data such as tepid job growth accompanied by strong consumer spending and sluggish business investment with subpar economic expansion. Also, the incoming Brexit vote on June 23, 2016 added another dimension of uncertainty.
Feds Policymakers Leave Interest Rate Unchanged (July 26-27, 2016)
Federal Reserve's Open Market Committee at its fifth meeting of the year left the key benchmark interest rate intact. However, overall sentiment was that of a cautious optimism because of a recovering U.S. job market and mostly rational approach by all parties concerned on how to negotiate and navigate Britain's exit from the European Union.
No Hike in Rates by Policy Makers at the September Meeting (Sep 20-21, 2016)
Federal Reserves policymakers left the federal funds rate untouched after two days of meeting on September 20 and September 21, 2016. The statement issued at the conclusion of the sixth FOMC meeting of the year acknowledged a growing job market and improving economy with "a balanced risk" to the economy. Fed also forecast its estimate for nation's growth at 1.8 percent this year and 2 percent for both 2018 and 2019. However, for the first time in nearly two years as well as since Janet Yellen has become the Chairwoman of the Federal Reserve, three members of the Open Market Committee broke ranks with majority decision to hold the key interest rate intact. These three heads of Fed's regional banks--Esther George of Kansas City, Loretta Mester of Cleveland and Eric Rosengren of Boston--argued, without success, for increasing the federal funds rate.
Last Meeting of Feds Policymakers before the Election Leaves Interest Rate Unchanged
Federal Open Market Committee held its last meeting before the November 8, 2016, polls on November 1 and November 2, and left the interest rates intact.
Feds Raise Key Interest Rate before the Yearend
For the second time in a decade, Federal Reserve policymakers, at the end of a two-day Federal Open Market Committee meeting, on December 14, 2016 decided to hike the federal funds rate by 25 basis points.
FOMC MEETING FOR CALENDAR YEAR 2017
Federal Open Market Committee Meeting (January 31-February 1, 2017)
Federal Reserves policymakers held the interest rate intact in their first open market committee meeting in the Trump era.
Federal Open Market Committee Meeting (March 14-15, 2017)
Federal Reserves policymakers raised the federal funds rate by a 25 basis point.
Federal Open Market Committee Meeting (May 2-3, 2017)
Federal Reserves policymakers met for a two-day open market committee session on May 2 and May 3, 2017 to take stock of the economic and employment situation, and decided to stay put another hike in interest rate. However, addressing the correspondents after the two-day meeting was over on May 3, 2017, the Federal Reserve Chair Janet Yellen reiterated the previous guidance of at least two more rate hikes to come.
Federal Open Market Committee Meeting (June 13-14, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on June 13 and June 14, and took the much anticipated step of gradual increment in Federal Funds rate. The raise of 25 basis point will elevate the key rate to 1 percent or above for the first time since the Great Recession of 2008. The Federal Funds rate will now move between 1 percent and 1.25 percent.
Federal Open Market Committee Meeting (July 25-26, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on July 25 and July 26, and left the federal funds rate intact.
Federal Open Market Committee Meeting (September 19-20, 2017)
Federal Reserves policymakers held two-day Federal Open Market Committee session on September 19 and September 20, and left the federal funds rate intact. However, the policymakers hinted that they might raise the Federal Funds Rate for the third time this year in their December meeting. The most important decision, though, from the September 19-20, 2017, FOMC meeting was to begin gradual roll-off of nearly $4.5 trillion in treasury and mortgage securities the Federal Reserve had acquired during the peak of recession. Under the Fed's plan:
* The offloading of nearly $4.5 trillion will be gradual
* $10 billion--$6 billion in treasury and $4 billion in mortgage bonds--will be put off the balance sheet every month, beginning in October 2017
* Every quarter for the next one year--January 2018, April 2018, July 2018 and October 2018--the offload amount is to increase by $10 billion until it reaches $50 billion per month
* Beyond October 2018, the offload amount is proposed to stay steady at $50 billion each month.
President Trump Names His Choice to Lead Federal Reserve
President Donald Trump on November 2, 2017 named Jeremy Powell, a centrist Republican and member of the Federal Reserve board of governors since 2012, to lead the Federal Reserve after the incumbent chair Janet Yellen's term would be over in February 2018. By choosing Powell, Trump had selected someone with deep expertise in the financial industry who was a lawyer by training and investor banker by trade. As Fed Chair, a position that is, according to many, the second most powerful post in the U.S. government, Powell will be the voice of an institution that is charged with keeping the economy on track by adjusting interest rates that influence the decisions of all Americans. Janet Yellen will become the first Federal Reserve head not to be re-nominated for the second term since G. William Miller in 1979. Former Fed Chairmen Paul Volcker, Alan Greenspan and Ben Bernanke were all nominated by presidents from one party and re-nominated for the second term by presidents from the other political party. On her watch, the Federal Reserve halted a controversial bond-buying program, lifted interest rates off zero, and began to unload gradually its $4.5 trillion balance sheet.
FOMC MEETING FOR CALENDAR YEAR 2018
Federal Open Market Committee Meeting (January 30-31, 2018)
During the last meeting of Federal Reserve's policy meeting (January 30-31, 2018) under the leadership of outgoing chair Janet Yellen, policymakers stood pat and held the interest rates steady. Last week, U.S. Senate confirmed Trump pick Jerome Powell by 84-13 votes as the new Chairman of Federal Reserve.
Federal Open Market Committee Meeting (March 20-21, 2018)
Federal Reserve Banks's open market committee met on March 20 and March 21 for its second interest rate-setting panel's second meeting this year to take stock of economy, job market, inflation and interest rate. Policymakers raised the benchmark federal funds rate by 25 basis points to a range of 1.50 percent to 1.75 percent.
Federal Open Market Committee Meeting (May 1-2, 2018)
Federal Reserve policymakers met for two days on May 1 and May 2, 2018 to review the economy's overall health and movement in inflation. Although policymakers had noticed a persistent move of inflation to go upward, they refrained from taking any action on interest rates during this cycle of Federal Open Market Committee meeting.
Federal Open Market Committee Meeting (June 12-13, 2018)
Federal Reserve policymakers met for two days on June 12 and June 13, 2018 and raised a key benchmark rate by 25 basis point, an expected rate hike. The overnight Federal Funds Rate now stands between 1.75 percentage point and 2 percentage point. Last time when the rate was around 2 percentage point it was summer of 2008, right before the financial meltdown that had thrown the U.S. to the Great Recession. Addressing the correspondents at the conclusion of open market committee meeting on June 13, 2018, Feds Chairman Jerome Powell called the health of economy as in a "great shape" and people who were looking for and wanted to find jobs were able to find them. The Federal Reserve now foresees the
* Economic growth to be 2.8 percent, up from 2.7 percent from March 2018 estimate
* Unemployment rate to fall 3.6 percent in 2018, down from 3.8 percent estimated in March 2018
Federal Open Market Committee Meeting (July 31-August1, 2018)
Federal Reserve policymakers held the two-day rate-setting committee meeting on July 31, 2018 and August 1, 2018, and decided to keep the benchmark Federal Funds Rate intact as part of a well-choreographed policy move to raise the interest rate in a disciplined and phased manner.
Federal Open Market Committee Meeting (September 25-26, 2018)
Federal Reserve's policymakers during their two-day open market committee meeting took a choreographed action of hiking key interest rate by 25 basis point to a range of 2 to 2.25 percent, the highest level in a decade. Fed Chairman Jerome Powell, answering to reporters' questions on September 26, 2018, expressed optimism in nation's economy with "growth running at a healthy clip", wages up and inflation low. Fed now estimates that U.S. economy will grow at 3.1 percent rate this year (2018), first time the annual growth rate will exceed 3 percent since 2005. However, President Donald Trump injected politics in the so far politically indifferent Fed decision-making process by expressing his displeasure over rising interest rates: "I am not happy about [rising rate]".
Federal Open Market Committee Meeting (November 6-7, 2018)
Federal Reserve policymakers have stayed put during their November 2018 open market committee meeting, but are sure to raise a key interest rate in their December meeting in line with growing expectation among the economists as Feds is pursuing its twin goals of price stability and maximizing jobs.
January 28-29, 2020, FOMC Meeting
Year's first Federal Open Market Committee session held on January 28, 2020 and January 29, 2020 took stock of the situation, and decided to keep the benchmark federal funds rate at 1.5% to 1.75% range. Policymakers emphasized the underlying strength of the U.S. economy.
March 3, 2020, Unscheduled FOMC Meeting
In the light of deteriorating conditions stemming from worsening coronavirus crisis, Federal Reserve's policymakers held an emergency session on March 3, 2020. Although they stressed on continuing strength of U.S. economic fundamentals, they took the preemptive step to stanch any significant slowdown of the economy by lowering the target Federal Funds Rate by 50 basis points. The rate now stands at 1.0% to 1.25%.
March 15, 2020, Unscheduled FOMC Meeting
In the second emergency, unscheduled meeting in less than two weeks, the Federal Reserve policymakers sounded alarm on March 15, 2020 on a potential significant downward economic spiral, or even worse. They drastically cut the target Federal Funds Rate to 0%-0.25%, and announced plan to buy billions of dollars in treasury and mortgage-backed securities to shore up the economy.
March 17-18, 2020, FOMC Regular Meeting Cancelled
April 28-29, 2020, FOMC Meeting
Federal Reserve's policymakers used the April 28-29, 2020, to analyze threadbare how deep the economy had sunk since most of the nation had been shut down since national emergency had been announced in mid-March 2020 to prevent spread of COVID-19. The policymakers left a key interest rate, Federal Funds Rate, unchanged at 0% to 0.25%.
FOMC Meeting for 2021
Federal Open Market Committee Meeting (December 18-19, 2018)
Federal Reserve's Open Market Committee at the last meeting of the year raised a key interest rate, Federal Funds Rate, by 25 basis point, marking the fourth time the policy making body took this decision this year. The latest rate hike during its two-day (December 18-19, 2018) session came amid stock market's wild gyrations, growing trade conflict between world's two largest economies and a looming federal government shutdown over President Donald Trump's insistence of fund to build border wall. Federal Reserve's policymakers also issued a three-year forecast:
* 2019: Two more rate increases; projected growth rate of 2.2 percent down from 2.5 percent foreseen three months ago
* 2020: A final hike, taking the Federal Funds Rate to 3.1 percent; projected growth rate of 2.0 percent
* 2021: Four Federal Reserves officials foresee a rate reversal to stimulate economy
FOMC MEETING FOR 2019
Federal Open Market Committee January Meeting (January 29-30, 2019)
Federal Reserve policymakers took a pause in their first meeting and left the key interest rates intact as the world economy was facing head wind and geopolitical tension was running high.
Federal Reserves Policymakers Stay Put (March 19-20, 2019)
In the March 19-20, 2019, Federal Open Market Committee meeting, the policymakers took a cautionary note, and have decided to stay put as far as federal funds rate has been concerned. The Feds by the end of the second open market committee meeting of the year kept the funds rate between 2.25% and 2.50%.
Federal Reserves Keep Interest Rates Intact (April 30-May 1, 2019)
FOMC during its April 30-May 1, 2019 meeting kept the federal funds rate unchanged.
Federal Reserves Policymakers Cut Rates
Assessing a slowdown in global economy, uncertainty over Trump's trade war with China and other nations and softer economic growth projection, Federal Reserves Chairman Jerome Powell, who has been assailed by Trump on several occasions for raising the interest rates, and his distinguished fellow policymakers took the first step in years to reduce the federal funds rate by 25 basis points during July 30-31, 2019, Federal Open Market Committee (FOMC) meeting.
Second Rate Cut in as Many Months
In the September 17-18, 2019, Federal Open Market Committee meeting, Feds policymakers cut the benchmark interest rate by another 25 basis points.
Federal Reserves Takes Another 25 Basis Points off Its Key Lending Rate
Beset by uncertainty over slowing business spending, overall cooling global economy and continuing trade tiff between the two largest economies of the world, Federal Reserves policymakers took the expected step of reducing the Federal Funds Rate by 25 basis points during its October 29-30, 2019, Federal Open Market Committee meeting. At the end of the two-day meeting, Feds issued a statement that dropped the crucial wording of hint of another rate cut in the December 2019 Open Market Committee meeting, thus setting the expectation that Feds were now done with rate cutting for the remainder of the year. Two regional Feds presidents--presidents of Boston and Kansas City-- opposed the rate cut as they saw no need for any additional prod to the economy.
Feds Policymakers Conclude the Year with an Insight of a Steady Rate Regime
The last meeting of the Federal Open Market Committee (FOMC) meeting held on December 10 and December 11, 2019 saw no move on the interest rate on behalf of policymakers after three rate cuts this year followed by four rate increases in 2018. The key lending rate, Federal Funds Rate, now stands in the range of 1.5%-1.75%.
FOMC Meetings in 2020
FOMC MEETING FOR 2019
Federal Open Market Committee January Meeting (January 29-30, 2019)
Federal Reserve policymakers took a pause in their first meeting and left the key interest rates intact as the world economy was facing head wind and geopolitical tension was running high.
Federal Reserves Policymakers Stay Put (March 19-20, 2019)
In the March 19-20, 2019, Federal Open Market Committee meeting, the policymakers took a cautionary note, and have decided to stay put as far as federal funds rate has been concerned. The Feds by the end of the second open market committee meeting of the year kept the funds rate between 2.25% and 2.50%.
Federal Reserves Keep Interest Rates Intact (April 30-May 1, 2019)
FOMC during its April 30-May 1, 2019 meeting kept the federal funds rate unchanged.
Federal Reserves Policymakers Cut Rates
Assessing a slowdown in global economy, uncertainty over Trump's trade war with China and other nations and softer economic growth projection, Federal Reserves Chairman Jerome Powell, who has been assailed by Trump on several occasions for raising the interest rates, and his distinguished fellow policymakers took the first step in years to reduce the federal funds rate by 25 basis points during July 30-31, 2019, Federal Open Market Committee (FOMC) meeting.
Second Rate Cut in as Many Months
In the September 17-18, 2019, Federal Open Market Committee meeting, Feds policymakers cut the benchmark interest rate by another 25 basis points.
Federal Reserves Takes Another 25 Basis Points off Its Key Lending Rate
Beset by uncertainty over slowing business spending, overall cooling global economy and continuing trade tiff between the two largest economies of the world, Federal Reserves policymakers took the expected step of reducing the Federal Funds Rate by 25 basis points during its October 29-30, 2019, Federal Open Market Committee meeting. At the end of the two-day meeting, Feds issued a statement that dropped the crucial wording of hint of another rate cut in the December 2019 Open Market Committee meeting, thus setting the expectation that Feds were now done with rate cutting for the remainder of the year. Two regional Feds presidents--presidents of Boston and Kansas City-- opposed the rate cut as they saw no need for any additional prod to the economy.
Feds Policymakers Conclude the Year with an Insight of a Steady Rate Regime
The last meeting of the Federal Open Market Committee (FOMC) meeting held on December 10 and December 11, 2019 saw no move on the interest rate on behalf of policymakers after three rate cuts this year followed by four rate increases in 2018. The key lending rate, Federal Funds Rate, now stands in the range of 1.5%-1.75%.
FOMC Meetings in 2020
January 28-29, 2020, FOMC Meeting
Year's first Federal Open Market Committee session held on January 28, 2020 and January 29, 2020 took stock of the situation, and decided to keep the benchmark federal funds rate at 1.5% to 1.75% range. Policymakers emphasized the underlying strength of the U.S. economy.
March 3, 2020, Unscheduled FOMC Meeting
In the light of deteriorating conditions stemming from worsening coronavirus crisis, Federal Reserve's policymakers held an emergency session on March 3, 2020. Although they stressed on continuing strength of U.S. economic fundamentals, they took the preemptive step to stanch any significant slowdown of the economy by lowering the target Federal Funds Rate by 50 basis points. The rate now stands at 1.0% to 1.25%.
March 15, 2020, Unscheduled FOMC Meeting
In the second emergency, unscheduled meeting in less than two weeks, the Federal Reserve policymakers sounded alarm on March 15, 2020 on a potential significant downward economic spiral, or even worse. They drastically cut the target Federal Funds Rate to 0%-0.25%, and announced plan to buy billions of dollars in treasury and mortgage-backed securities to shore up the economy.
March 17-18, 2020, FOMC Regular Meeting Cancelled
April 28-29, 2020, FOMC Meeting
Federal Reserve's policymakers used the April 28-29, 2020, to analyze threadbare how deep the economy had sunk since most of the nation had been shut down since national emergency had been announced in mid-March 2020 to prevent spread of COVID-19. The policymakers left a key interest rate, Federal Funds Rate, unchanged at 0% to 0.25%.
(September 15-16, 2020 FOMC Meeting) Fed to Continue with Near Zero Interest Rate through 2023
After a two-day Federal Open Market Committee meeting, Federal Reserve policymakers led by the Fed chief Jerome Powell on September 16, 2020 left the benchmark Federal Funds Rate unchanged near zero percent. Fed policymakers don't see the rate going upward anytime sooner than early 2024.
Last Meeting of 2020 Reiterates Feds' Continuing Support for Propping up the Economy
After the two-day (December 15-16, 2020) Federal Open Market Committee meeting, Federal Reserve Chairman Jerome Powell acknowledged that the economy needed continuous support from the central bank and urged Congress to pass the relief package as soon as possible. Federal Reserve's policymakers left the benchmark overnight lending rate intact at close to zero percent where it had been since March 2020 in the aftermath of national lockdown in response to the eruption of novel Coronavirus. Federal Reserve is also buying $80 billion in Treasury securities and $40 billion in mortgage-backed bonds per month. The monthly bond buyback program will continue until the economy makes "substantial" progress. Federal Reserve on December 16, 2020 issued more optimistic forecast about the health of economy compared to Feds' September forecast. Feds now forecasts that the economy will contract 2.4% this year compared to September 2020 forecast of 3.7%. Next year (2021), the economy will grow, according to the Federal Reserve, by 4.2% compared to 4.0% projected in September.
FOMC Meeting for 2021
FOMC January Meeting (January 26-27, 2021)
Powell Committed to Low Interest Regime
The first meeting of 2021 of the Feds' key policymaking body was held on January 26 and January 27. The open market committee decided to keep the key benchmark rate intact at close to zero for foreseeable future in the backdrop of 10 million jobs lost due to pandemic. Federal Reserve Chairman Jerome Powell on January 27, 2021 declined to answer the question over speculative price bubble in the stock market for select few stocks such as GameStop. In its guidance, Federal Reserve said that it would likely keep the Federal Funds Rate between zero percent and 0.25% at least through 2023.
FOMC March Meeting (March 16-17, 2021)
Meeting Minutes Released; Feds to Continue Bond Purchases and Keep Rates Low
The minutes from Federal Open Market Committee's March 16-17, 2021, meeting was released on April 7, 2021 after a customary three-week period. The meeting minutes reflect the minds of policymakers focused on continuing "assets purchases" at least at the "current pace" until the economy gains full traction and inflation reaches its intended target of 2%. Observers are watching whether Feds policymakers drop any hint of tapering down the long-term treasury and mortgage bonds purchase plan which is currently running at $120 billion per month. The bond purchase was begun at the outset of the pandemic to keep the lending rates low in order to keep the business lending spigot open.
FOMC July Meeting (July 27-28, 2021)
Feds Chairman Jerome Powell said that the rising Delta infections would not be a significant threat to the nation's economic growth although parts of the country with low vaccination coverage would see rising caseloads. Federal Reserve Chairman on July 28, 2021 also said at the end of the two-day Federal Open Market Committee meeting that the policymakers would want to wait for more data to come before starting to taper off a $120 billion per month bond buyback program.
FOMC
Meeting September 21-22, 2021: Feds Expected to Raise Rate in 2022
Federal
Reserve’s latest
Federal Open Market Committee meeting was held on September 21-22, 2021.
There was no surprise in the two-day meeting itself, but the policy statement
released at the end of the meeting had an updated timeline for potential
increase in federal funds rate. According to the latest policy
statement, Federal Reserve’s policymakers are likely to start raising benchmark
interest rate in 2022, with one rate hike in that year, followed by three hikes
in 2023 and three hikes in 2024. In its June 2021 update, Feds policymakers
didn’t envision any rate hike for 2022, but the July 2021 Consumer Price
Index raised a fear of accelerated inflation scenario as the index rose 3.1%
compared to a year ago, largest such year-over-year increase since 1991.
Feds also gave hint of tapering down its monthly $120 billion treasury and
mortgage-backed securities buyback plan.
FOMC Meeting December 14-15, 2021: Feds Expected to Raise Rates Three Times in 2022
Federal Reserve policymakers concluded the last session of their policymaking committee meeting on December 15, 2021 by accelerating the taper-off of mortgage- and treasury-backed securities to terminate the buyback program by early 2022 instead of mid-2022. It is expected to raise the key benchmark interest rate three times in 2022 in the backdrop of the largest year-over-year inflation in a generation that was registered in October 2021. The securities buyback program will be tapered off to $30 billion a month.
*********** FEDERAL RESERVE BANK'S OTHER ACTIONS AND POLICIES ************
Federal Reserve to End the Relaxed Capital Requirements for Banks
Almost a year-old policy put in place to facilitate the flow of capital and loan to buttress a cratering economy because of a global pandemic, Federal Reserve Bank on March 19, 2021 said that it would end the [relaxed] policy effective March 31, 2021. Under the relaxed policy on capital requirements of the nation's major banks, financial institutions can exclude U.S. Treasuries and central bank reserves when calculating their Supplemental Leverage Ratio, or SLR. Nation's major banks canvassed the Federal Reserve Bank to extend the relaxed capital requirements. But Federal Reserve Bank thought that the situation didn't merit another extension.
Feds
to Probe Federal Reserve Officials’ Trades
The
Office of the Inspector General for Federal Reserve will
investigate into financial trades of the duo of the regional bank presidents during
the pandemic that might have benefited Dallas Reserve President Robert
Kaplan and Boston Federal Reserve President Eric Rosengren. Federal Reserve
has said on October 4, 2021 that the objective of the probe is to assess
whether any law has been violated. Kaplan and Rosengren—both have announced last
week their decision to step down—have denied any wrongdoing.
*********** FEDERAL RESERVE BANK'S OTHER ACTIONS AND POLICIES ************
Biden to Nominate Powell for a Second Term
President Joe Biden on November 22, 2021 decided to re-nominate Jerome Powell to lead the Federal Reserve for a second, four-year stint as the country is facing twin crises of a surging COVID cases, mass-scale desertion from the work-force and a crushing inflation.
FOMC MEETING FOR 2022
FOMC MEETING JANUARY 25-26, 2022
Feds Policymakers Prep the Nation for a Series of Rates Hikes, Unwinding Buyback Program
Federal Reserve's Open Market Committee met in the year's first interest rate-setting session on January 25 and January 26, 2022, and issued statement that hinted impending rate hikes as well as phasing out the monthly bond buyback program. Feds Chairman Jerome Powell on January 26, 2022 emphasized on measures to "support continuous labor market gains", "promote a long expansion" and "price stability" in the light of the highest inflation rate in 40 years.
FOMC MEETING MARCH 15-16, 2022
Feds Policymakers Begin Long-stretch Hikes with a 25-basis Point Increase
Federal Reserve's Open Market Committee on March 16, 2022 began with what could be a total of seven increases in a key benchmark interest rate this year, followed by another three to four hikes next year. After a two-day (March 15-16, 2022) FOMC session, the policymakers hiked the Federal Funds Rate by 25 basis point.
FOMC MEETING MAY 3-4, 2022
Sharp Rate Hike by Feds
Addressing heads-on a stubborn inflation that had recently hit a 40-year high, Federal Reserve's policymakers on May 4, 2022 announced a 50-basis point hike in the Federal Funds rate. The rate hike announced at the end of a two-day (May 3-4, 2022) open market committee meeting was the steepest since 2000.
Dallas Federal Reserve Bank Selects First Female President
In a historic move, Dallas Federal Reserve Bank that represents the Federal Reserve's Eleventh District in the Federal Open Market Committee and covers Texas, southern New Mexico and northern Louisiana has chosen on May 11, 2022 a woman to lead the regional bank for the first time. On August 22, 2022 Lorie Logan, 49, an executive of the New York Federal Reserve Bank, will assume her role as the 13th president of Dallas Federal Reserve Bank.
FOMC MEETING (JUNE 14-15, 2022): A Major Push to Tame Inflation
Federal Reserve policymakers during their mid-year (June 14-15, 2022) open market committee meeting announced a major war on inflation. On June 15, 2022, Feds hiked a key benchmark rate by highest margin since 1994. Federal Funds Rate has been hiked 75 basis points to a range between 1.5% and 1.75%. Federal Reserve Chairman Jerome Powell, justifying the huge increase, said that the current situation warranted such a bold step and the Federal Reserve had delivered just that.
FOMC MEETING (JULY 26-27, 2022): Another Massive Rate Boost
Federal Reserve's policy-making body, Federal Open Market Committee, in its two-day session took stock of the June 2022 inflation report. As the inflation--CPI grew 9.1% June 2022 compared to a year ago--rose at the highest rate in 41 years, Feds policymakers went for a bold push to rein in inflation. On July 27, 2022, Federal Reserve raised the key federal funds rate another 75 basis points, pegging the key benchmark rate at a range between 2.25% and 2.50%. Federal Reserve Chairman Jerome Powell expressed hope that, with Feds carefully intervening, the economy would evade a recession while bringing much needed price stability.
FOMC MEET (SEPTEMBER 20-21, 2022): Another 75 Basis Point Hike in Key Benchmark Rate
Federal Open Market Committee (FOMC) met on September 20, 2022 and September 21, 2022. Feds policymakers raised the Federal Funds Rate by another 75 basis points to a range between 3.00% and 3.25%.
FOMC MEET (NOVEMBER 1-2, 2022): 75 Basis Point Rate Hike
Federal Open Market Committee on November 2, 2022 raised the key Federal Funds Rate by another 75 basis points to a range of 3.75% and 4.0%, so called "restrictive territory", a key driver to slowing down the growth. In the accompanying statement, Feds said that "in determining the pace of future increases in the target range, the Committee will take into account the cumulative tightening of the monetary policy, the lags with which monetary policy affects the economic activity and inflation, and economic and financial developments".
FOMC MEET (DECEMBER 13-14, 2022): 50 Basis Point Rate Hike
In its last meeting of 2022, Federal Open Market Committee raised the Federal Funds Rate by 50 basis points, 25 basis points less than the margin of the past four increases. At the end of the two-day (December 13-14, 2022) session, Fed Chair Jerome Powell said on December 14, 2022 that nobody "knows whether we're going to have a recession or not". With the December 2022 hike, the Federal Funds Rate is in the range of 4.25% to 4.50%.
Federal Reserve Chairman Jerome Powell told reporters on December 14, 2022 that "we have long ways to go to get back to price stability", implying at least another 75-basis point boost, according to market watchers, by the end of 2023. According to the Feds, the economic growth projected for 2023 is now lowered to a mere 0.5 percent from the September 2022 forecast of 1.2%. The jobless rate is forecast at 4.6%, up from 3.7% now.
FOMC MEETING FOR 2023
FOMC MEET JANUARY 31-FEBRUARY 1: Funds Rate Increased by 25 Basis Points
In the first Federal Open Market Committee meeting of the year, Feds policymakers on February 1, 2023 dropped a clear hint that the deceleration of inflation might have already begun, but stopped short of declaring victory. To reflect their collective interpretation of nation's pricing pressure and potential trajectory, the central bank's policymakers settled on a more modest rate increase of 25 basis points, marking eighth increase in Federal Funds Rate since March 2022.
FOMC MEET MARCH 21-22, 2023: Feds Hikes Rate by 25 Basis Points
During March 21-22, 2023 Federal Open Market Committee meeting, policymakers discussed the risk of inflation, and increased the federal funds rate by 25 basis points to 5.0%. The policy statement issued at the end of the meeting calls for continuing to exercise the tool of hiking the interest rate to tame the inflation as "inflation remains elevated".
FOMC MEET MAY 2-3, 2023: Hikes Rate by 25 Basis Points; Edges Closer to Rate Hike Pause
Federal Reserve policymakers on May 3, 2023 raised the Federal Funds Rate by 25 basis point after its two-day (May 2-3, 2023) Open Market Committee meeting. However, there is one notable exception in this session compared to others since Federal Reserve has launched its fight against inflation in March 2022 by raising a key interest rate. In its latest policy document, Federal Reserve's policymakers replaced a reference to further interest rate hikes with a reference to weighing the risks in the upcoming months. After three high-profile bank failures, many banks may tighten their lending conduit, thus potentially slowing down the economy and obviating the need of any interest rate hikes. That may lead to pause in Federal Reserve's campaign of rate hikes. The Federal Funds Rate is now in the range of 5.00% to 5.25%, and is at a 16-year-high level.
FOMC MEET JUNE 13-14, 2023: Policymakers Stay Put on Interest Rates
Federal Reserve policymakers met June 13-14, 2023 for Open Market Committee meeting, and after 15 months of battle against inflation with 10 rate hikes, Feds policymakers left the benchmark Federal Funds Rate intact. They will assess how the previous hikes play out in taming the inflation before raising interest rates again. Feds Chairman Jerome Powell reiterated that Federal Reserve would bring down the inflation to historic threshold of about 2%.
FOMC MEET JULY 25-26, 2023: Interest Rates Hiked
Federal Reserve policymakers on July 26, 2023 increased the benchmark Federal Funds Rate by 25 basis points.
Feds Policymakers Stay Put on Interest Rate (FOMC MEET SEPTEMBER 19-20, 2023)
For the second time in three key interest rate-setting meetings, Federal Reserve policymakers on September 20, 2023 left the Federal Funds Rate intact, implying a moderating inflation trajectory. The Feds policymakers also hinted that there could be another rate hike coming and the rate would stay at elevated levels in 2024.
FOMC MEET OCTOBER 31-NOVEMBER 1, 2023: Rate Held Unchanged
After a two-day Federal Open Market Committee meeting, Federal Reserves policymakers on November 1, 2023 left the benchmark Federal Funds Rate unchanged at 5.4%, a 22-year high figure. After the conclusion of the two-day meeting, Federal Reserves issued a statement, claiming that the economy "expanded at a strong pace" in July-September quarter and the job market remained strong. Feds Chairman Jerome Powell said that Fed's interest rates hike campaign had positive effect on the economy.
FOMC MEETING FOR 2024
Fed not Yet Ready for Rate Cut
In the new year's first policy-setting meeting (January 30-31, 2024), Federal Reserve policymakers on January 31, 2024 left the key interest rate intact.
FOMC MEET MARCH 19-20, 2024: Rate Held Intact
After a two-day Federal Open Market Committee meeting, the Federal Reserve Chairman Jerome Powell said on March 20, 2024 that the Feds policymakers still expected three rate cuts this year. Although the inflation picked up in January and February 2024, according to Powell, it's coming down, albeit slowly. During March 19-20, 2024, meeting, policymakers left the interest rate intact.
FOMC MEET APRIL 30-MAY 1, 2024: Feds Leave Federal Funds Rate Unchanged
Federal Reserves policymakers left the benchmark federal funds rate intact after their two-day open market committee meeting (April 30-May 1, 2024).
FOMC MEET JUNE 11-12, 2024: Fed Leaves Interest Rate Untouched
As expected, Federal Reserves policymakers at the end of their June 2024 Open Market Committee meeting left the Federal Funds Rate intact. The June 12, 2024, decision makes the possibility that there may not be any rate cut coming this year.
FOMC MEET JULY 30-31, 2024: Fed Leaves Interest Rate Untouched
Feds policymakers in their July 2024 rate-setting meeting kept the Federal Funds Rate intact, but Chairman Jerome Powell on July 31, 2024 hinted that there might be the first rate cut in years coming during the next open market committee meeting in September 2024.
JACKSON HOLE ECONOMIC SYMPOSIUM: Fed Drops Broad Hint for Rate Cut
Addressing the economists, Feds officials and other dignitaries during Federal Reserve's summer retreat at Jackson Hole, Wyoming, Federal Reserve Chairman Jerome Powell on August 23, 2024 said that the "time has come for the policy to adjust" and the "direction of the travel is clear", alluding to a rate cut during the September 2024 Federal Open Market Committee meeting. Federal Funds Rate is now in the range between 5.25% and 5.50%. The policy restraint and rhetoric has become all the more important after the Bureau of Labor Statistics has revised downward the job creations between April 2023 and March 2024 by approximately 818,000.
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