Fed Leaves Policy Unchanged, Removes Reference to Global Events Posing Risks
Fed Leaves Policy Unchanged, Removes Reference to Global Events Posing Risks
The Federal Reserve decided to leave the target range for the fed funds
unchanged at 0.25%-0.50% as widely expected, and gave no clear signs
whether the bank will hike rates at the June 14-15 meeting.
However,
the Fed did remove reference to the global and financial developments
posing risks to their outlook, tilting the statement to the hawkish
side.
Regarding the economic outlook, the Fed said that “labor
market conditions have improved further even (since March meeting) as
growth in economic activity appears to have slowed”. Officials noted
household spending has slowed even though real income has risen and
consumer sentiment remains high.
The Fed repeated that it will
continue “to closely monitor inflation indicators and global economic
and financial developments," the statement said.
Fed's George the lone dissenter in favour of hiking rates by 25bps at the time being.
