Fed Keeps Rates as they Are; Reduces Likely Number of Rate Increases in 2016 from Four to Two
This topic will be discussed in the upcoming Mondays with Dr. Joe on March 21. This news surprised no one as there are still great concerns about the economic conditions of world markets. The statement released at their prior meeting did not include comments about risk, but the one for this meeting did. They said “The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen. However, global economic and financial developments continue to pose risks.” It's likely that the first part was wishful thinking, since retail sales data were disappointing and prior data were revised down, and manufacturing activity still shows difficult time in that sector. The chances of no increases or only one in 2016 are now higher.
This topic will be discussed in the upcoming Mondays with Dr. Joe on March 21.
This news surprised no one as there are still great concerns about the economic conditions of world markets. The statement released at their prior meeting did not include comments about risk, but the one for this meeting did.
They said “The Committee currently expects that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace and labor market indicators will continue to strengthen.
However, global economic and financial developments continue to pose risks.” It's likely that the first part was wishful thinking, since retail sales data were disappointing and prior data were revised down, and manufacturing activity still shows difficult time in that sector.
The chances of no increases or only one in 2016 are now higher.
Discussion
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