At its 27 March meeting, the Federal Open Market Committee (FOMC) decided to continue with its current policy stance. Despite rumours that the Fed was about to adopt a more hawkish tone in this meeting, given the recent acceleration in headline inflation, the statement that the Fed will ?continue expanding its holdings of securities as announced in November? was maintained, thus reaffirming its pledge to purchase USD 600 billion of longer-term Treasury bonds through to June. Moreover, the FOMC unanimously decided to keep the federal funds rate within the historically low range of 0% to 0.25% set in December 2008. Following the meeting, Federal Reserve chairman Ben Bernanke gave a press conference, the first in the Fed's 98-year history. With the press conference, U.S. monetary authorities aim to increase transparency, following the example of other central banks. In the press conference , Bernanke acknowledged that ?economic conditions, including low rates of resource utilization, subdued inflation trends and stable inflation expectations are likely to warrant exceptionally low levels for the federal funds rate for an extended period, which suggests that there will be a couple of meetings before action?. The Fed also reiterated its view that surging commodity prices are likely to have only a transitory effect on inflation, and that the Committee will maintain the stimulus until the recovery is robust enough to withstand tighter credit.
United States Monetary Policy
No change to the Fed's policy stance
April 27, 2011
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United States Economic News
United States: Clinton’s lead over Trump widens but presidential election results are still uncertain
October 20, 2016
Only a few weeks ahead of the 8 November presidential elections, major polls suggest that Hillary Clinton has extended her lead over Donald Trump, but the presidential race will be decided in the most fiercely contested states.
October 14, 2016
In September, nominal retail sales expanded 0.6% over the previous month.
October 7, 2016
Non-farm payrolls grew 156,000 in September, which came in below August’s upwardly-revised increase of 167,000 (previously reported: +151,000).
October 3, 2016
The ISM manufacturing index increased more than expected in September and returned to expansionary territory, after a temporary setback in August.
September 27, 2016
Following an increase in August, when the Conference Board’s consumer confidence index jumped to 101.8 points, consumer sentiment among U.S. households rose further in September.