At its October 3 meeting, the Federal Open Market Committee (FOMC) left the intended federal funds rate unchanged at 6.5%. This is the third consecutive meeting that resulted in no change, following six increases totaling 175 basis points (bp). The FOMC cited moderating growth and rapid productivity advances as the reasons for its decision to leave the stance of monetary policy unchanged. However, it also stated that the balance of risk is weighted mainly by heightened inflationary pressure, specifically from the labor market, energy prices, and inflation expectations.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-10, pp. 02-05, 10.01.2000.