WASHINGTON–The Federal Reserve’s Open Market Committee is widely expected to conclude its two-day meeting here today by announcing an increase in its target interest rate by a quarter-point. Robust economic performance, strong employment numbers and inflation data that is within the FOMC’s target range are all expected to push the Fed to increase rates.
The Federal Reserve has been slowly pushing rates up, although they remain at historic lows and were at near-zero in 2015. While many analysts had projected four quarter-point increases in 2016, the Fed moved just twice. Should the Fed increase rates today the move will come just three months after it made another such increase at year-end 2016.
The Fed’s current benchmark overnight lending rate target is set at a range of 0.5% to 0.75%.