FOMC Holds Steady, No Interest Rate Increase; Observers Split on If and When There’s Another
April 29, 2016
The Federal Reserve Open Market Committee concluded its regularly scheduled meeting earlier this week and, to no one’s surprise, decided yet again to keep its interest rate powder dry for the time being. The people who parse FOMC statements for a living derived some nuanced significance from a few wording changes, but are split on whether and when there will be an increase this year. The Fed noted that labor market conditions have improved further even as growth in economic activity appears to have slowed. “Growth in household spending has moderated, although households’ real income has risen at a solid rate and consumer sentiment remains high,” said the U.S. central bank. “Since the beginning of the year, the housing sector has improved further but business fixed investment and net exports have been soft.” Meanwhile, inflation has continued...