By Tom Burnett CFA
On July 31, 2024, the Federal Open Market Committee (“FOMC”) issued its July report on Monetary Policy. The FOMC decided to leave rates unchanged at the current range of 5.25-5.50%. The Fed will also continue to sell down its inventory of Treasury and mortgage-backed securities in monthly amounts of $25 billion and $35 billion respectively. Over the past two years, the Fed has reduced the assets on its balance sheet from more than $9 trillion to $7.2 trillion (Report H.4.1-July 24, 2024).
In its announcement, the FOMC repeated its goal of reducing inflation to its target rate of 2.0%, before it will begin to lower the Fed Funds rate.
The next FOMC meeting is scheduled for September 18, 2024.
Tom Burnett CFA is Director of Research