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- The Fed Holds the Fed Funds Rate Steady – Because it Doesn’t Know What Else to Do
The Fed Holds the Fed Funds Rate Steady – Because it Doesn’t Know What Else to Do
by Ryan McMaken Mises.org
The Federal Reserve’s Federal Open Market Committee (FOMC) on Wednesday left the target policy interest rate (the federal funds rate) unchanged at 5.5 percent. This “pause” in the target rate suggests the FOMC believes it has raised the target rate high enough to rein in price inflation which has run well above the Fed’s arbitrary two-percent inflation target since mid-2021.
The press release from the FOMC was largely unchanged from previous recent meetings and contained the usual language about the state of the economy and the Fed’s ability to manage it: