Developments
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FOMC Meeting Results - May 2023
The Federal Reserve (Fed) Federal Open Market Committee (FOMC) completed its most recent meeting today (May 3) and issued its monetary policy statement. The last FOMC statement was issued on March 22.
The Fed decided to raise interest rates by another 25 bsp (0.25 percent), the same amount as its March increase.
While there seemed to be a consensus that the Fed would raise rates this week, a significant drop in GDP (+1.1% Q1 versus +2.6% in Q4 of 2022) and improving inflation left open the possibility that the Fed might choose this session to pause rate increases.
Job growth has continued to be relatively strong, however, with ADP data (private sector payroll data) released just today showing very strong payroll growth in April of +296,000 jobs. A strong labor market and lingering inflation above the Fed's target level of 2% seemed to weigh more heavily on the Fed's decision than other evidence of a slowing economy.
With today's change, the Federal Funds Rate target range now stands at 5.00%-5.25%.
(posted: 5-3-23)
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Connected Policies
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No Results Found
Federal Reserve Authorities
Status
This is a report of the Congressional Research Service that describes the authorities of the Federal Reserve and summarizes its processes.
Status: no changes to current law and authorities of the Federal Reserve are under consideration.
