WASHINGTON—NAFCU Chief Economist and Director of Research Curt Long said the Federal Open Market Committee, which chose not to raise the federal funds target rate this week as CUToday.info reported, is still on track for an interest rate hike in June.
"The FOMC is not overreacting to the mediocre economic data received in recent months," Long said yesterday after the close of the panel's two-day meeting. "The committee seems convinced that the overall trajectory of the economy remains solid.
"We are still on track for a rate hike at the committee's next meeting in June, although poor jobs data later this week could cloud the issue," he continued.
The FOMC will meet again June 13-14.
After its two-day March meeting, the FOMC announced a quarter-point increase in the federal funds target rate to a range of 0.75% to 1%. Last month, Federal Reserve Chair Janet Yellen said the FOMC wants to "be ahead of the curve and not behind it" in terms of raising interest rates appropriately, Long noted.
The FOMC raised the federal funds target rate to a range of 0.5% to 0.75% last December.
The committee’s revised projections are three quarter-point rate hikes in 2017, three in 2018 and three to four in 2019, Long noted.