Federal Reserve Stays On Hold at 1-Year Anniversary of Last Rate Hike. The Federal Reserve Board of Governors left its short-term benchmark Federal funds target rate unchanged at 5.25%. (See the Fed's statement and our "Link of the Day".) It's been exactly one year since the Fed last raised rates, making this the longest stretch of unchanged rates since the record low 1% rate July 2003 through June 2004 (long spells of unchanged rates are rare). An 18-month stretch of 5.5% rates from April 1997 through September 1998 ranks as the next longest unchanged time, a period -- with 5+% nominal rates and 3% (or so) real rates, a booming economy and rising stock market -- that looks very much like the current one. The latter 1990's saw one of the best stretches of money fund asset growth in history. In 1997, funds grew by 17.4%, and, in 1998, assets grew by 27.7%. Today's statement says the "Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected", so all indications are that rates will remain on hold and that flat is very good for money funds.

Email This Article




Use a comma or a semicolon to separate

captcha image

Money Market News Archive

2024 2023 2022
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September