March 16, 2016 - The Federal Open Market Committee (FOMC) ended its two-day meeting leaving rates unchanged, citing “global economic and financial developments continue to pose risks” to the U.S. economy. However, the Fed “expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and the labor market indicators will continue to strengthen.”
The biggest change from previous meetings was the lower projected forecasts from the policy makers. The latest projected median Federal Funds rate for the end of 2016 is now 0.875%, which indicates only two future rate hikes in 2016. This estimate has been reduced from four hikes, cited at the end of 2015.
The next meeting will be held on April 26-27, but the June 14-15 meeting will have the Summary of Economic Projections and a press conference. It is widely expected that if there is a rate increase, it would be at the June meeting.