Federal Reserve issues FOMC statement (2024)

FAQs

What was the FOMC decision? ›

In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent. In considering any adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks.

The Federal Reserve held rates steady and described an uncertain path toward rate cuts in 2024. Read more about the implications of the Fed's latest decision.

No, the Fed once again held interest rates steady at 5.25%-5.50% during its May, 2024 FOMC meeting.17 Rates have been steady at this level since July 2023.

Critics have also raised concerns about the Fed's role in fractional reserve banking, its contribution to economic cycles, and its transparency. The Fed has been accused of causing economic downturns, including the 2007-2008 financial crisis, and of being influenced by private interests.

The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.

The Federal Reserve made the decision to keep its benchmark interest rate unchanged at its most recent policy meeting, and rates haven't moved since the start of 2024 following 11 rate hikes in 2022 and 2023.

The 30-year fixed mortgage rate is expected to fall to the mid-6% range through the end of 2024, potentially dipping into high-5% territory by the end of 2025. However, recent economic developments have led some forecasters to believe that rates will remain elevated at around 7% for the remainder of this year.

No, CD rates have started incrementally dropping in 2024. Both national average and high-yield CD rates saw a slowdown in increases last year.

INTEREST CHARGE EXPLANATION FOR NEXT 3STEP CREDIT ACCOUNTS

The annual interest charge is currently 29.9% (variable).

Who owns the Federal Reserve? The Federal Reserve System fulfills its public mission as an independent entity within government. It is not "owned" by anyone and is not a private, profit-making institution. As the nation's central bank, the Federal Reserve derives its authority from the Congress of the United States.

What is the current FOMC target? ›

Target Federal Funds Rate Upper Limit is at 5.50%, compared to 5.50% yesterday and 5.00% last year. This is higher than the long term average of 2.64%.

The FOMC holds eight regularly scheduled meetings during the year and other meetings as needed. Links to policy statements and minutes are in the calendars below.

The Bottom Line. Some people argue that the Federal Reserve is unconstitutional because they believe the Constitution does not grant the federal government the authority to create a central banking system.

The Federal Reserve has made many large errors in the past. Two well-known examples involve the Great Depression of the 1930s and the Great inflation of the 1970s. The Fed also contributed to the Great Recession in 2008.

Central banking prior to the Federal Reserve

The First Bank of the United States (1791–1811) and the Second Bank of the United States (1817–1836) each had a 20-year charter.

US Fed Meeting Outcome highlights: The US Federal Reserve announced its interest rate decision today after a two-day Federal Open Market Committee (FOMC) meeting, leaving the benchmark interest rates unchanged at 5.25 per cent - 5.50 per cent for for the sixth straight meeting, in line with Wall Street estimates.

Fed raises key rate by half-point and signals more to come

The policymakers forecast that their key short-term rate will reach a range of 5% to 5.25% by the end of 2023.

As you can see from the FOMC meeting calendar below, the committee meets eight times a year. These meetings last two days and conclude with the FOMC releasing its policy decision at 2 pm Eastern time. The Fed chief then holds a press conference at 2:30 pm.

Central bank policymakers held steady on interest rates at the conclusion of their meeting, a move that was widely expected by the markets. The fed funds target rate remains at its 5.25% to 5.5% range. The Federal Reserve called out a “lack of further progress” in getting inflation down to its 2% target.