Rates Unchanged Following First FOMC Meeting of 2019

The Federal Open Market Committee (FOMC) left the federal funds target rate and monetary policy unchanged after a two-day meeting that concluded yesterday.

In its statement, the committee commented on the strengthening labor market and increased economic activity, and also noted that "job gains have been strong, on average, in recent months, and the unemployment rate has remained low." Regarding inflation, the FOMC said that on a "12-month basis, both overall inflation and inflation for items other than food and energy remain near two percent. Although market-based measures of inflation compensation have moved lower in recent months, survey-based measures of longer-term inflation expectations are little changed."

The Fed will continue to monitor economic and financial developments as they determine future adjustments to the target range for the federal funds rate. Currently, the target remains at a range of 2.25 to 2.5%.

The FOMC will meet again March 19-20.