WASHINGTON—The Federal Open Market Committee (FOMC) will hold the second day of its two-day meeting today and is expected to adjourn by holding the federal funds target rate range at its current 0% to 0.25% for the foreseeable future.
The rate has remained at its current level since March 2020.
Federal Reserve Chairman Jerome Powell has previously outlined three standards that must be met before the FOMC will consider raising rates:
- Inflation has reached 2% and stayed at that level for some time
- Longer‑term inflation expectations remain well anchored at 2%
- The labor market has sufficiently recovered
In recent interviews, including with 60 Minutes, Powell has made clear the Fed doesn’t intend to make any changes to rates until 2022 at the earliest, even as some see potential signs of inflation.
Cautionary Note
As CUToday.info reported earlier, minutes from the committee's meeting last month revealed building economic optimism, but cautioned the path of the economy would depend significantly on the course of the virus – including progress on vaccinations – and that the ongoing public health crisis would continue to weigh on economic activity, employment, and inflation and posed considerable risks to the economic outlook.
The committee is scheduled to next meet June 15-16.