Putting to rest months of anticipation that it would raise interest rates this fall, the Board of Governors of the Federal Reserve System and the Federal Open Market Committee (FOMC) today voted to leave the key federal funds rate unchanged -- but many housing industry and economic analysts, as well as potential homebuyers, seem to be shrugging their shoulders at all of the hoopla. Explaining that the information the FOMC has received since its July meeting suggests that economic activity is expanding at a moderate pace, household spending and business fixed investment have been increasing moderately, the housing and labor markets continue to improve and inflation continues to run below its long-term objectives, the Fed reaffirmed its view that the current zero to 0.25 percent target range for the federal funds rate “remains appropriate.” Voting in favor of the action were: Janet L. Yellen, chair William C. Dudley, vice chairman Lael Brainard Charles L....
- The Board of Governors of the Federal Reserve System and the Federal Open Market Committee (FOMC) today voted to leave the key federal funds rate unchanged.
- According to the Fed’s economic projections, economic growth is expected to increase from 1.9 percent to 2.1 percent, and the unemployment rate may fall slightly from 5.1 percent to 5 percent.
- There may still be a rate hike before the end of the year, the Fed said, and such an announcement will come in October or December, when the FOMC meets next.