This archive report was first published on 11 December 2019.
On December 11, 2019, the Federal Reserve made a significant decision, leaving interest rates unchanged at its final meeting of the year.
According to the Fed's latest economic projections, officials expect no rate changes in 2020, with only one move anticipated in 2021 and a second in 2022.
Chair Jerome H. Powell and his colleagues are confident in their current monetary policy setting, which was implemented to shield the economy from the effects of President Trump's trade war and slowing global growth.
As the Fed continues to monitor the economy, it stated in its post-meeting statement: 'The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures.'
With the current policy stance deemed 'appropriate to support the expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective,' officials dropped their previous caveat about uncertainties surrounding the outlook.
Notably, all 17 Fed officials were in agreement with the decision to maintain steady rates, with only four anticipating higher rates in 2020, down from nine in the previous projections.
