The FOMC raised the target rate as expected, but with a more dovish statement reflecting a sluggish Q1 and a more hawkish projection of 2019 and 2020 hikes in response to fiscal stimulus from tax cuts and the budget agreement.
Fed Funds Rate (aka target rate): The overnight interest rate charged by depository institutions on funds held at the Federal Reserve. The fed funds rate is set by the Fed’s policy-making body, the Federal Open Market Committee, or FOMC.
Federal Open Market Committee (FOMC): The piece of the Federal Reserve Board that votes on and determines monetary policy in the US economy.
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