Source: LSA Connect November 3, 2022  

  The Federal Reserve Open Market Committee raised the fed funds rate today by another 0.75%, to a range of 3.00-3.25%. The vote was unanimous, with no dissents. The formal statement language was hardly changed at all, only noting an upgrade from ‘softening’ to ‘modest growth’ in spending and production. The Fed has hiked by […]

  The Federal Reserve Open Market Committee raised the fed funds rate today by another 0.75%, to a new range of 2.25-2.50%. The vote was unanimous, with no dissents, unlike June’s meeting. The formal statement language changed little, but noted ‘recent indicators of spending and production have softened’. However, job markets were still described as […]

  The Federal Reserve Open Market Committee continued its aggressive tightening pace in the June meeting, by raising the key fed funds interest rate today by 0.75%—to a new range of 1.50-1.75%. This was the largest single meeting hike since 1994, and featured one dissenting vote (by a member favoring 0.50%). Why 0.75% and not […]

Market Notes   Economic data for the holiday-shortened week included a rise in manufacturing sentiment and small drop in services sentiment, despite both remaining solidly expansionary. House prices continued to increase at a dramatic pace. The May employment situation report outpaced expectations, although results were not as strong as in recent months. Global equity markets […]

  The Federal Reserve Open Market Committee turned more aggressive in this month’s meeting by raising the key fed funds interest rate by 0.50%—for the first time in over twenty years by that amount—to a new range of 0.75-1.00%. There were no dissents. This was in line with consensus estimates, steered by Fed member comments […]

  The Federal Reserve Open Market Committee raised the key fed funds interest rate today by 0.25%, to a new range of 0.25-0.50%. This first hike in four years was as expected, with the Fed communicating their intention and amount fairly directly in recent weeks. However, at least until the Russian invasion of Ukraine, there […]

  The Federal Reserve Open Market Committee made no changes in interest rates today, as expected, staying with the target of 0.00-0.25%. But, times are changing. The formal statement language was significantly simplified from December, that economic activity and Click here to view the full article Source: LSA Connect January 26, 2022  

  The Federal Reserve Open Market Committee made no changes in interest rates today, as expected, staying at the target of 0.00-0.25%. However, in keeping with intensified market expectations in recent weeks (and signaled by the Fed itself), a key policy change was a doubling in the pace of tapering (to $30 bil./month) off of […]

  The Federal Reserve Open Market Committee made no changes in monetary policy today, keeping the target short-term interest rate at 0.00-0.25%. The official statement was little changed in substance, with wording about the hardship caused by the Covid-19 pandemic replaced by the improvement due to wider vaccinations.