Federal Funds Rate Remains Unchanged
14th June
Wendy Le
On June 11th at 4:00 am, the federal funds rate was announced to have remained unchanged at the targeted rate of 0-0.25%. This was an expected decision from the Federal Reserve as the annual inflation rate in May fell from 0.3% to 0.1%, a record low since September 2015, largely due to the plunging oil prices as well as the decline in clothing and transportation prices. The aim is to successfully recover from the impacts of COVID-19 by increasing spending within the economy which will also increase the inflation rate to the targeted 2%. US unemployment claims are also falling and this decision was made in order to support economic recovery.