The Federal Reserve Stabilizes Interest Rates
Federal Reserve policymakers did not rock the boats on Wednesday and again chose to stabilize interest rates to make the state of the US economy more clear.
At the end of the two-day policy meeting, the Federal Open Market Committee voted to maintain its federal funding rate target from 4.25% to 4.50%, as investors expected. Prior to the decision, the interest rate futures market could not be the same as 97%.
Uncertainty between businesses and consumers has waned several since the Fed policy meeting in June, with unemployment remaining low and economic growth recovering in the second quarter. However, inflation is marked slightly from its low point of 2.2% in April, which is still above the Fed’s 2% target, with price growth expected to rise in the coming months.