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What are the FOMC’s current opinions on economic growth, unemployment, interest rates, and inflation? How might...

What are the FOMC’s current opinions on economic growth, unemployment, interest rates, and inflation? How might their stance change moving forward?

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Answer #1

The FOMC believes that the US economy is growing at a solid pace of 3%.Unemployment has fallen to 4.1% as job gains have risen and has averaged to 179,000.The LFPR remained unchanged.

The fed has raised the range federal funds rate to 1/4 percentage and the range is now in between 1-1/2 and 1-1/4.This has been done to reduce monetary accomodation.The inflation remains stable at 3% and is expected to remain the same for a longer period.

Their stance could change if the rate of inflation does not remain stable and increases.Or,if there is a recession in the economy.Then,they would have to adjust the range of cereal funds rate accordingly.

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