At its August 19 meeting, the Federal Open Market Committee (FOMC) decided to maintain the existing degree of pressure on the federal funds rate, expecting it to remain around 5.5%. This inaction came as no surprise to the financial markets. The funds rate has been altered only once in the last 19 months - an increase of 25 basis points that occurred at the FOMC's March 25, 1997 meeting. The committee will reconvene on September 30.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-09, pp. 02-04, 09.01.1997.