Skip to main content

Fed Abstains From Another Rate Hike

Phil Hall
Jan 27, 2016
One month after its historic rate hike, the Federal Reserve has resumed its policy of leaving things alone

One month after its historic rate hike, the Federal Reserve has resumed its policy of leaving things alone.

The central bank’s Federal Open Market Committee (FOMC), following a unanimous vote, issued a statement that mostly praised the U.S. economy, including a comment that the “housing sector has improved further.” But the Fed also noticed several hiccups in the economic environment, most notably in a softening of net exports and a slowdown in inventory investment, as well as the continuation of an inflation rate running below two percent. Global economic uncertainly was also cited as a reason for caution.

“Given the economic outlook, the Committee decided to maintain the target range for the federal funds rate at one-quarter to one-half percent,” the FOMC said in its statement. “The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to two percent inflation.”

However, the Fed insisted that more rate hikes were coming–just not with any great speed.

“The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run,” the statement continued. “However, the actual path of the federal funds rate will depend on the economic outlook as informed by incoming data.”

Published
Jan 27, 2016
Reports: Evergrande Group Makes $83.5M Interest Payment

Faltering Chinese development firm fends off default with payment to international bondholders.

Industry News
Oct 22, 2021
FAR Establishes Borrower Engagement Division

Finance of America Reverse LLC announced its formally established Borrower Engagement Division.

Industry News
Oct 22, 2021
Automating Appraisals No Panacea For Removing Bias

With racism 'grandfathered in' to housing prices in minority neighborhoods, a solution to 'unconscious bias' is difficult to find

Industry News
Oct 21, 2021
Reports: Evergrande Group Arranges Bond Extension

Reuters, REDD say company's billionaire chairman has agreed to provide additional collateral to ensure a construction project tied to a $260M bond is completed.

Industry News
Oct 21, 2021
New American Funding Hires Regional Manager

Mark Tribuna will lead effort to expand company's partnership with affordable nonprofit builders in mid-Pacific region

Industry News
Oct 21, 2021
Rocket Pro Announces Initiatives To Boost Brokers

Company brings Rocket Tech, the Rocket Network and Rocket Marketing to mortgage brokers across the country

Industry News
Oct 19, 2021