FOMC Leaves Fed Funds Rate Unchanged Today

The Federal Open Market Committee provided a more encouranging appraisal of the United States economy today. However, FOMC members still voted to keep the closely watched Federal Funds interest rate unchanged and there was no indication that the Federal Reserve Bank would raise rates anytime soon despite better-than-expected November 2009 employment numbers.

The Federal Reserve Bank said it will continue its plans to withdraw certain lending programs over the next few months — an indication that the Federal Reserve Bank may start to unwind more significant asset purchases shortly thereafter.

The Federal Reserve Bank and its policymaking colleagues at the FOMC said that "the deterioration in the labor market is abating." This was the Federal Reserve Bank's first formal declaration that an very difficult employment outlook is actually brightening. The national unemployment rate slipped to 10% in November 2009 from 10.2% in October 2009.

The Federal Reserve Bank also stated that, "Financial market conditions have become more supportive of economic growth," in an indication stringent credit markets are loosening a bit. Also, consumer spending seems to be "expanding at a moderate rate," the Federal Reserve Board said, describing income growth as "modest."

Both statements represent upgrades over prior month statements. And, there have been many encouraging signs recently that the economic recovery is building.

Fed Cuts Fed Funds Rate by 0.50%

The Federal Reserve Bank cuts short-term interest rates today by dropping the Fed Funds Rate to 1.00% from 1.50%.

Federal Reserve Leaves Rates Unchanged

The Federal Reserve Bank left short-term interest rates unchanged today at their Federal Open Market Committee (FOMC) meeting. The Federal Funds rate remains at 2.00%.

Fed Fund Interest Rate Remains Unchanged

Fed Leaves Short-Term Interest Rates The Same

The Federal Reserve Board voted today to leave the closely watched Fed Funds interest rates the same at 2.00%. This is the first time that the Federal Reserve has not lowered rates since the summer of 2007.

Federal Reserve Concerned Over Inflation

Concern was also expressed about inflation and inflation expectations by the Federal Reserve, but there was no hint of an imminent rise in the Fed Funds interest rates at this point in time.

Federal Reserve Cuts Fed Funds Rate by .25% from 2.25% to 2.00%

Federal Reserve Lowers Fed Funds Rate

The Federal Reserve cut the Fed Funds Rate by 0.25% from 2.25% to 2.00% today. The Federal Reserve also signaled that its rate cutting may be coming to an end. The smaller cut in the Fed Funds Rate, which was the 7th cut in the Fed Funds Rate since September 2007, was conservative compared to recent larger cuts and reflected upward pressure on inflation.

The Federal Reserve Board's Federal Open Market Committee (FOMC) voted 8 to 2 to cut the Fed Funds Rate at which banks lend money to each other by 0.25% from 2.25% to 2.00%, the lowest Fed Funds Rate since November 2004.

Discount Rate Also Lowered

The FOMC also lowered the discount rate charged to banks and brokers that borrow funds directly from the Federal Reserve's Discount Window by 0.25% from 2.50% to 2.25%.