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Amid Solid Growth but Low Inflation, Fed Holds Rates Steady

Amid Solid Growth but Low Inflation, Fed Holds Rates Steady

Posted: May 14 2019
The Federal Open Market Committee announced it would maintain the target range for the federal funds rate at the current 2.25-2.5%. While the FOMC noted the labor market remains strong and economic activity has risen at a solid rate, household spend growth and business investment slowed during the first quarter and inflation remained below the Fed’s 2% target. 
“We don't see any evidence at all of overheating,” said Fed Chairman Jerome Powell during a press conference. The FOMC’s statement repeated its guidance that the committee “will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate.”

As part of its efforts to maintain the fed funds rate in its targeted range, the Fed also issued an “implementation note” stating that the Fed set the interest rate paid on reserve balances at 2.35%.

To read more visit: https://www.federalreserve.gov/newsevents/pressreleases/monetary20190501a.htm

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