At its May 18 meeting, the Federal Open Market Committee (FOMC) opted to leave the federal funds rate target unchanged at 4.75%. The discount rate (which the Federal Reserve charges on overnight loans to banks) was also left unchanged at 4.5%. At the meeting, however, the FOMC “adopted a directive that is tilted toward the possibility of a firming in the stance of monetary policy,” fueling expectations that it may raise rates in the near future.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-06, pp. 02-05, 06.01.1999.