The Federal Reserve Open Market Committee (FOMC) released their decision on the federal funds rate earlier today and raised the rate by 75 bps to a range of 3.00-3.25%. Commentary from the press release centered on a strong emphasis on elevated inflation due to continued supply and demand disruptions, higher energy prices and broader price pressures. Economic indicators have pointed to modest growth in spending and production. The job market continued to remain relatively strong with a low unemployment rate.
The FOMC reemphasized its commitment 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 are jeopardized.
The Federal Reserve Dot Plot is the graphical representation of each committee member’s interest rate outlook, which currently points to further increases.