Federal Reserve Leaves Fed Funds Rates Unchanged

By Tom Burnett CFA

On November 1, 2023, the Federal Reserve Open Market Committee (“FOMC”) voted unanimously to leave the Fed Funds range at 5.25%-50% for the second meeting in a row. In its announcement, the FOMC repeated that the Fed is “strongly committed to returning inflation to its 2% objective.” In addition, the Fed will continue to reduce its holdings of Treasury and mortgage-backed bonds at previously announced levels. Treasury holdings will be reduced by $60 billion per month, while mortgage holdings will be sold off at the rate of $35 billion per month.

The next FOMC meeting will be held on December 13, 2023.

Tom Burnett CFA is Director of Research