The Federal Reserve published its semiannual Monetary Policy Report on July 14, setting the stage for Chair Kevin Warsh’s back-to-back congressional appearances on July 14 and 15. It’s Warsh’s first time delivering the report since taking office earlier this year.
The headline number: the federal funds rate target range stays parked at 3.5-3.75%, exactly where the FOMC left it after voting 12-0 at its June 16-17 meeting. No dissents, no drama. Interest on reserve balances was set at 3.65%.
What the report actually says
The Monetary Policy Report, required under the Federal Reserve Act, covers the Fed’s assessment of economic conditions, its policy implementation, and forward-looking projections.
The report highlights solid expansion in economic activity, strong productivity numbers, and investment figures that suggest businesses haven’t pulled back despite a messy global backdrop. Unemployment has remained stable. Tensions in the Middle East continue to weigh on the outlook. The next FOMC meeting is scheduled for July 28-29.
