WASHINGTON–As expected, the Federal Reserve’s Open Market Committee left rates unchanged when it met yesterday, but analysts continue to anticipate it will make a move when it meets in December.
The Fed left its benchmark interest rate target between 1% and 1.25%.
The FOMC continues to have a rosy interpretation of the direction of the economy. Gross domestic product grew 3% in the third quarter, faster than many had anticipated.
“The labor market has continued to strengthen and that economic activity has been rising at a solid rate despite hurricane-related disruptions,” the FOMC said in a statement. “Although the hurricanes caused a drop in payroll employment in September, the unemployment rate declined further."
The Fed conceded that inflation is still "running below 2%," which is the Fed’s target rate.
The Fed already has raised rates twice this year. As CUToday.info reported here, economists in the credit union community are also anticipating a year-end rate increase.
When the Fed meets in December it will likely do so with a new chairman. President Trump is not expected to reappoint current Chair Janet Yellen. Analysts are predicting that Fed Governor Jerome "Jay" Powell will instead get the nod.