WASHINGTON—The Federal Open Market Committee (FOMC) is not expected to raise the federal funds target rate as it ends its two-day meeting today.
The committee last raised the rate to the current range of 1.75% to 2% at the end of its June meeting – the second rate hike of the year. Many members at that meeting expressed interest in raising rates at least one more time this year.
However, following testimony from Fed Chair Jerome Powell earlier this month, NAFCU Chief Economist and Vice President of Research Curt Long said "odds are strengthening" for two additional rate hikes. The committee will meet three other times before the end of the year.
Minutes from the FOMC's June meeting revealed positive opinions about the economy and labor market, though many members were concerned about the possible effects of trade policy.
As CUToday.info reported here, the strong economy doesn’t necessarily mean the Fed must raise rates, according to Navy Federal Credit Union’s economist.