Search
 

FOMC Maintains 1% Target

WASHINGTON-For about three quarters now, the Federal Open Market Committee has kept its federal funds target rate at 1%. The Federal Reserve's monetary policy group announced March 16 that it would continue its "accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support...

By Sarah Snell Cooke | Updated on March 23, 2004

WASHINGTON-For about three quarters now, the Federal Open Market Committee has kept its federal funds target rate at 1%. The Federal Reserve’s monetary policy group announced March 16 that it would continue its “accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity.” According to an FOMC statement, the period between meetings has demonstrated continued solid expansion of output. However, new hiring is still lagging, but job losses have slowed. Inflation remains low, the FOMC pointed out, and it should continue to remain low. “The Committee perceives the upside and downside risks to the attainment of sustainable growth for the next few quarters are roughly equal,” the FOMC said in a statement. “The probability of an unwelcome fall in inflation has diminished in recent months and now appears almost equal to that of a rise in inflation. With inflation quite low and resource use slack, the Committee believes that it can be patient in removing its policy accommodation.” At least one credit union economist has said the rate will likely remain at 1% through August 2004. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.