Federal Reserve leaves open chance of June rate hike
29-Apr (MarketWatch) – The Federal Reserve said it expects the U.S. economy to rebound after slowing in the ‘winter months,” leaving open the chance of an interest-rate increase as early as June. Yet the latest statement by the Fed after top officials met on Wednesday could be a signal the central bank might wait a bit longer. Many analysts think the Fed will hold of at least until September. The Fed also took note of the sluggish U.S. growth during the first quarter but pointed to ‘transitory factors.” Although GDP and job creation “slowed during the first quarter,” the Fed said, the central bank “continues to expect that … economic activity will expand at a moderate pace.” The Fed’s statement and actions were approved in a 10-0 vote.
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PG View: Anyone who thinks the Fed will actually hike rates in June is delusional. This is a throwaway policy statement because Yellen doesn’t need to answer any questions this month.
Fed: Don't worry about the present, focus on the future.
— Pedro da Costa (@pdacosta) April 29, 2015
