The Economic Perspective: “The Fed Doesn’t Move”

This is Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program examines the Fed not moving.  Mike, anytime the Federal Reserve meets people watch for two things.  First, did the Fed change the key interest rate it controls?  And second, what did the Fed say about future interest rate changes?  Recently the Fed concluded one of their periodic meetings.  What came out of the meeting regarding the two important questions?

Mike:  Summary Answer

  1. Fed did not change its key interest rate
  2. Also, the Fed said it didn’t expect to change interest rates “for some time”
  3. Continues its policy maintained so far this year
  4. Shows it has completely changed from its policy from 2015 to 2018 of consistently raising interest rates
  5. But also indicated Fed has no intent of lowering interest rates
  6. Some have called for lower rates in light of tame inflation and potential weakness in the economy from the on-going trade war with China
  7. So looks like the Fed will neither go up or go down on interest rates
  8. I’m MW

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics