The Federal Reserve Open Market Committee (FOMC) released its decision on the federal funds rate earlier today and raised the rate by 25 bps to a range of 4.50-4.75%. Commentary indicated that inflation had moderated somewhat over the past few months but still remains elevated. Economic indicators have pointed to modest growth in spending and production coupled with a job market that has remained robust with relatively low unemployment.
The FOMC is firmly committed to achieving full employment and price stabilization, with a target inflation rate of 2% over the longer term. Committee members continue to observe a wide range of economic factors and are prepared to adjust monetary policy if the attainment of the goals is jeopardized.
Source: Federal Reserve
We will receive members’ updated expectations at the next FOMC meeting, which is scheduled for March 21 and 22. Additionally, the committee will release its updated Summary of Economic projections, which includes the dot plot.
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