As market participants had expected, the Federal Open Market Committee left the federal funds rate target unchanged at its March 16 meeting. Despite a robustly growing economy, the target has remained at 1% since mid-2003. The horizon for the next expected change—as implied by fed futures—has been progressively pushed out, and it is now expected to occur no sooner than late summer or early fall.
Suggested citation: "Monetary Policy," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-04, pp. 04, 04.01.2004.