Increases likely to be limited to 25 bps
The Federal Reserve raised short-term interest rates lifting its federal-funds rate target to 3.5% from 3.25% and signaling that more increases are to come. The decision, which was expected, marks the 10th consecutive increase by the Fed.“Aggregate spending, despite high energy prices, appears to have strengthened since late winter, and labor market conditions continue to […]
First reduction in two years
In his semi-annual Monetary Policy Report to Congress today, U.S. Federal Reserve Board chairman Alan Greenspan said that interest rates would need to rise further to keep inflation in check. In addition to higher rates, he projected sustained economic growth and muted inflation. This message was more or less what markets were expecting to hear. […]
Economy operating close to capacity
Ninth increase in a year
Governor gives no hints on timing of hikes
Unclear what currency moves really mean: report
Look for a 25 bps rise at June FOMC meeting
U.S. economy on “reasonably firm footing”, Greenspan says