March 16, 2017 – As many experts had predicted, the US Federal Reserve yesterday announced an increase in the federal funds rate from 0.75% to 1.00%. The Federal Open Market Committee cited strengthening in the labor market and moderate expansion in economic activity. Job gains were solid, and the unemployment rate has remained steady. Household spending rose and business fixed investment has gotten more solid. Importantly, inflation increased close to the longer-run objective of 2%. While this fractional increase continues the central bank’s accommodative monetary policy stance, future gradual increases in the federal funds rate are expected, assuming current economic trends hold. Within the FOMC, only one member, Neel Kashkari, voted against the action, preferring to maintain the existing target range.
- The original press release is available from the US Federal Reserve.