November 9, 2018
The Federal Reserve kept the benchmark interest rate unchanged in a range of 2% to 2.25%. The money policymaking group indicated it believes the economy remains robust, fueled by healthy job growth, low unemployment, solid consumer spending and inflation still within its 2% target range.
The Fed says more interest rate hikes are planned in an effort to keep up with the strong U.S. economy and hold off inflation. The next rate increase is expected in December, which would be the fourth hike of the year. Three rate increases are projected in 2019.
Chairman Jerome Powell has stressed that the Fed is determined to follow a middle-of-the-road approach. That means gradually bumping up rates to control inflation, yet avoid tightening too aggressively so as not to triggering a recession.
The Fed says the tempo of rate hikes will be determined based on the pace of U.S. economic growth, the job market’s strength and inflation cues, as the it seeks to ascertain how the economy evolves.
Although it showed confidence in the economy’s resilience, the Fed did downgrade its assessment of business investment spending, noting that its pace had slowed from earlier in the year.
For comments, questions or concerns, please contact Dennis Kaiser