Washington, DC–The Federal Open Market Committee decided to raise the target range for the federal funds rate to 2-1/4 to 2‑1/2 percent in the wake of its two-day meeting.
In its statement, Federal Reserve said that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has remained low. Household spending has continued to grow strongly, while growth of business fixed investment has moderated from its rapid pace earlier in the year.
On a 12-month basis, both overall inflation and inflation for items other than food and energy remain near 2 percent. Indicators of longer-term inflation expectations are little changed, on balance, according to Fed.
Fed signals two hikes for 2019.
President Trump is no fan of Fed’s interest hikes. He tweeted yesterday that “I hope the people over at the Fed will read today’s Wall Street Journal Editorial before they make yet another mistake. Also, don’t let the market become any more illiquid than it already is. Stop with the 50 B’s. Feel the market, don’t just go by meaningless numbers.”
