Fed rate decision comes in

by Justin da Rosa16 Dec 2015
The Federal Reserve announced its benchmark rate target Wednesday afternoon and, as expected, raised the target for its benchmark rate.

“Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent,” the Fed said in a release. “The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”

The Fed committee said economic activity has been expanding at a moderate pace; household spending and business investment have increased over the past few months.

The decision was also influenced by ongoing jobs gains and declining unemployment.

“The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will continue to expand at a moderate pace and labor market indicators will continue to strengthen,” the Fed said. “Overall, taking into account domestic and international developments, the Committee sees the risks to the outlook for both economic activity and the labor market as balanced.”

The Fed also set out a future plan for the rate.

“The Committee expects that economic conditions will evolve in a manner that will warrant only 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,” the Fed said. “However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.”
 

COMMENTS

  • by Anon | 12/16/2015 3:34:32 PM

    1/2% is gradual?????

  • by Rosie | 12/16/2015 4:23:52 PM

    Ithttp://www.mpamag.com/ Its amazing to me that his announcement comes at a time when unemployment is down because of seasonal hires for the holidays. Spending is up because of seasonal purchases. God forbid they take an honest look at our economy when its in regular times. The middle class always gets the shaft.....I am tired of it. Single people like myself are hit the hardest. You can barely get back on your feet and then our wonderful Federal reserve says we are in much better shape, If our government officials had to live based on the same parameters that the common everyday Joe had to live in things would be a lot different. Health care, food, fuel, clothing all of this just keeps going up however, my income cannot catch up. When I do receive a small raise it throughs me into a higher income bracket and I actually make less than before I received the increase. Our government needs to live like the common folk. It would be a whole lot different.

  • by Michael Coppola | 12/17/2015 7:54:55 AM

    If the nations BANKS raised savings interest rates people might work more !! At this rate your money just dwindles down paying higher bills. What's the point . Why work? The nations economy would be much better!

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