Federal Reserve Leaves Interest Rate Unchanged

Yesterday, the Federal Reserve left its target federal funds rate unchanged. Paul-Martin Foss at the Carl Menger Center for the Study of Money and Banking explains:

Another rate hike is expected at the earliest at the June FOMC meeting, with the August meeting being a more likely candidate for a rate hike. Language in the FOMC statement was largely unchanged, with the exception of noting that economic growth has slowed, the labor market has improved, and household spending has moderated. The FOMC also removed language referring to inflation picking up, which would lead us to believe that they still think the rate of increase in inflation is, in their eyes, sub-optimal or slowing. The FOMC also removed language about global economic developments posing risks, instead stating that the Committee would continue to closely monitor global economic and financial developments. Kansas City Fed President Esther George dissented from the FOMC’s decision yet again, favoring an increase in the target federal funds rate to 0.50 to 0.75 percent. We wouldn’t expect much market reaction to today’s announcement, as it was already expected and should have been priced in.

Campaign for Liberty is actively pushing legislation requiring a full audit of the Federal Reserve. Find out more here.