FOMC Meets to Discuss Economy's Well Being and Interest Rates
The Federal Reserve's Open Market Committee today is beginning its regularly scheduled two-day meeting to assess the state of the economy and decide whether to adjust interest rates.
The panel, which consists of all the Fed's governors and five of the 12 presidents of the Fed's regional banks, meets eight times a year to set policy. It will announce its decision tomorrow afternoon.
The Federal Funds Rate-the rate depository institutions charge other depository institutions to borrow funds they have on deposit at the Fed and a rate used as a basis for other interest rate determinations-has been between 0 and 0.25% since December 2008.
The panel is meeting at a time when there are signs that the economy is slowing. The unemployment rate announced last week remained unchanged and there have been reverses in previous gains on housing construction.
Federal Reserve Chairman Ben Bernanke, who was appointed to the post by President Bush and reappointed last year by President Obama, chairs the committee.