<\/p>\nAs of 2:00pm ET Wednesday March 15, the target Fed funds rate stands at 0.875%. The Federal Reserve raised its target range to 0.75%-1.00% as it begins to gradually reduce accommodation while still keeping rates below neutral–the rate at which inflation is stable. Economists disagree over just what this rate is, offering different calculations based on varying estimates of different factors the Fed also takes into account, including stable job growth.<\/p>\n
The Fed\u2019s median projection for 2017 GDP growth is 2.1% for 2017 and 2018 while the unemployment forecast remains at 4.5%.<\/p>\n
The Fed continues to take an accommodating stance toward the US economy, following an approach of closely tracking market data and sentiments before making each policy decision. The US dollar index is down for the day, and gold increased 1.1% after the announcement of the Fed funds rate increase and an additional 0.74% from 2:00pm to 2:47pm while the press conference was still happening.<\/p>\n
Gold futures are back in the range we saw last week on Tuesday March 7, trading between $1216 and $1219 per ounce shortly after the meeting.<\/p>\n
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Before the first round of quantitative easing in 2009, the US dollar\u2019s purchasing power was 85% of its 2003 value, and the monetary base stood at around $1.7 trillion. According to the graph above from Rosland Capital\u2019s data on \n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n