The Federal Open Market Committee (FOMC) left the intended federal funds rate unchanged at 6.5% at its June 27–28 meeting, the first this year at which the target rate was not increased. The FOMC cited “signs that growth in demand is moving toward a sustainable pace” as the basis for maintaining the current stance of monetary policy. However, the Committee also cautioned that such signs “are still tentative and preliminary,” noting that “the risks continue to be weighted mainly toward conditions that may generate heightened inflation pressures.”
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-07, pp. 02-05, 07.01.2000.