Fed Funds Target Rate Unchanged At 1%-1.25%, As Expected

Federal Open Market Committee (FOMC) left the Fed funds rate in the range of 1.00% to 1.25%.

Federal Open Market Committee (FOMC) left the Fed funds rate in the range of 1.00% to 1.25%.

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Economic activity has been rising at a solid rate

Although the hurricanes caused a drop in payroll employment in September, the unemployment rate declined further. Household spending has been expanding at a moderate rate, and growth in business fixed investment has picked up in recent quarters. Gasoline prices rose in the aftermath of the hurricanes, boosting overall inflation in September; however, inflation for items other than food and energy remained soft. On a 12-month basis, both inflation measures have declined this year and are running below 2 percent. Market-based measures of inflation compensation remain low; survey-based measures of longer-term inflation expectations are little changed, on balance.

There were no changes in the paragraph on guidance.

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h/t Forexlive

The Vote was Unanimously In Favour Of Keeping Rate Unchanged

Source: federalreserve, forexlive

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