PSCF - Fed Meeting April 30-May 1 2019: Impact Of A Rate Rise

This article provides an impact assessment of the FOMC April/May30-1 2019 meeting and a possible rise in the Federal Funds Rate ((FFR)) to 2.75%.

The Federal Reserve held the target range for FFR at 2.25-2.5 percent during its policy meeting of March 2019 and reaffirmed its position to be patient about further policy firming in light of recent global economic and financial developments and muted inflation pressures.

The chart below shows the current FFR situation.

What Happens When The Fed Changes Rates?

A movement of the FFR has four broad impacts:

1. Bank lending costs on

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