FOMC Signals Rising Interest Rates

Jan. 13, 2005
By John S. McClenahen The Federal Open Market Committee (FOMC) will begin raising the influential federal funds short-term interest rate. The only question is when. August has been mentioned. But June is a possibility for what is likely to be a ...
ByJohn S. McClenahen The Federal Open Market Committee (FOMC) will begin raising the influential federal funds short-term interest rate. The only question is when. August has been mentioned. But June is a possibility for what is likely to be a 25-basis-point increase to 1.25% from the 1% that has prevailed since June 2003. Of course, when it released a statement following its May 4 meeting, the FMOC did not come right out and say when it would move and by how much. Rather it cloaked the future in its trademark obscure phrasing: "At this juncture, with inflation low and resource use slack, the Committee believes that policy accommodation can be removed at a pace that is likely to be measured." In other words, the federal funds rate, which affects other short-term interest rates and long-term rates as well, will likely be raised gradually.

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

The Benefits of Continuous Thermal Monitoring

Oct. 17, 2023
Read this eBook to learn more about collecting and using data intelligently to improve performance.

Modern Edge Computing Accelerates Smart Manufacturing Initiatives for Discrete Manufacturers

Oct. 22, 2023
Discover how Edge Computing platforms are a requisite for discrete manufacturers to solve production challenges, accelerate digitalization, and establish a reliable infrastructure...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!