IYF - Fed Meeting 19-20 March 2019: Impact Of A Rate Rise
This article provides an impact assessment of the FOMC March 19-20 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 first policy meeting of January 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 current FFR situation is shown in the chart below.
What Happens When The Fed Changes Rates?
A movement of the FFR has three broad impacts:
- Bank