The Federal Open Market Committee (FOMC) – the Fed’s monetary-policy setting arm – begins its September meeting today and is expected to hold the federal funds target rate range at its current 0 percent to 0.25 percent for the foreseeable future. The rate has remained at its current level since March 2020.
Federal Reserve Chairman Jerome Powell has previously outlined three standards that must be met before the FOMC will consider raising rates:
- inflation has reached 2 percent and stayed at that level for some time;
- longer term inflation expectations remain well anchored at 2 percent; and
continue reading »