Fed, Citing Job Gains, Stays on Track to Raise Rates Soon

by Jon Hilsenrath
29-Jul (Wall Street Journal) — The Federal Reserve on Wednesday left its key interest rate near zero but cited progress in the U.S. job market, a sign it remains on course to raise interest rates in September or later this year.

At the same time, the central bank flagged a nagging concern about low inflation, which is creating caution among officials and could convince them to delay the first interest-rate increase in the benchmark federal funds interest rate in nearly a decade.

…officials said inflation continued to run below the Fed’s 2% objective and said they were continuing to monitor inflation developments closely, a sign of some trepidation about its low level.

The benchmark federal funds rate has been near zero since December 2008, or 2,417 straight days.

[source]

PG View: Soon, as in when the unemployment rate hits 6.5% soon?