At its August 22 meeting, the Federal Open Market Committee (FOMC) left the intended federal funds rate unchanged at 6.5%. Citing “rapid advances in productivity” and signs of moderating demand, the FOMC has maintained the stance of monetary policy at its two most recent meetings. Previously, the Committee had increased the target rate 150 basis points (bp) in a series of five movements (75 bp of which arguably can be described as “taking back” cuts associated with the Russian default); the series culminated in a 50 bp increase at the May meeting.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-09, pp. 02-05, 09.01.2000.