U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY

U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY

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U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY

– Fed Shows Little in Swift Tightening of Monetary Policy

– Loan Rate May Rise in June

-U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY

U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY
Janet Yellen, U.S. Federal Reserve System Chairman

U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY. On Wednesday, the Federal Reserve refused to change interest rates but expressed the possibility of a hike in June. The Fed showed little sign of hurriedness in tightening monetary policy amid a seeming slump in the economy of the country.

This came in a report that basically reflected the one issued after its last policy meeting in March, the U.S. Central Bank’s rate-setting committee already labeled an improving labor market but noted that economic growth seemed to have been on the slow track.

U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY

It is noted as well that there was a close watch on inflation and stated that global economic headwinds were still on its radar. However it did not indicate the risks they posed, as it had last month.

“The committee continues to closely monitor inflation indicators and global economic and financial developments.” The Fed reported following a two-day meeting.

After the announcement, prices for U.S. heaved while the dollar was a little converted against a bag of currencies. Prices for longer-dated U.S. Treasuries rallied.

Dealers kept their backs that the first rate-hike of 2016 would come in September and gave less-than-even odds of a follow-up hike by December. Fed policymakers in March estimated two hikes this year.

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According to CME’s FedWatch group, investors now perceive a 23% probability that the Fed’s overnight loaning rate will rise in June, up from 21% preceding the decision.

“This latest statement has not laid out a strong position for a June rate hike.” Bill Irving, a portfolio manager with Fidelity Investments, said.

U.S. FEDERAL RESERVE NOT LIKELY TO SURGE RATE AMID SOFT ECONOMY