WASHINGTON—When the Federal Open Market Committee concludes its two-day meeting here today it is expected to do so without raising rates.
The committee last raised the federal funds target rate to the current range of 2.25% to 2.5% at the end of its December meeting, the fourth rate hike of 2018.
While there had been numerous forecasts the FOMC would raise rates at least twice during 2019, those forecasts now appear off-course. Following its March meeting, the committee indicated that the current range is expected to remain the same throughout this year and that only one rate hike will be in made in the next two years, barring extraordinary circumstances.
NAFCU Chief Economist and Vice President of Research Curt Long as well as economists with CUNA and CUNA Mutual have all indicated they see little indication of a rate increase this year. In addition, most economists agree that the Fed will hold at the current rate through 2020, according to a new Bloomberg survey, NAFCU noted.