Holding It Steady: Fed Leaves Rates Unchanged Amid Positive Growth Talk
(Worthy News) – It’s steady as she goes for the Fed this time around, as many investors had pretty much baked in. After a June hike of the benchmark federal-funds rate to a range between 1.75% and 2%, the Fed concluded this week’s meeting Wednesday by standing pat and keeping rates right there.
The economy continues to look healthy by most measures, the Fed’s statement said, but rate policy remains “accommodative” to support what the Fed called “ strong labor market conditions and a sustained return to 2% inflation.” Still, the Fed arguably seems to be preparing investors for a possible rate hike by the time of its next meeting in September.
The Fed sees risks to the economy as “roughly balanced,” and said that “further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.” [ Source: Forbes (Read More…) ]