Fed Not Raising Rates, Continuing To 'Monitor' Market Conditions

Fed Not Raising Rates, Continuing To 'Monitor' Market Conditions

The Fed officials said their outlook for the economy and interest rates had not changed much since December, when they indicated three rate hikes were likely this year, according to the minutes of the January 31-February 1 monetary policy meeting published Wednesday. They also pointed at the relatively high degree of uncertainty on issues ranging from Donald Trump administration's economic plans to the impact of a strengthening USA dollar.

There were no clear indications that the FOMC was looking to raise rates in March, although it is possible that the CPI inflation data released since the meeting could change this judgement.

Fed officials lowered their estimate of the long-run neutral rate to 3 percent at the end of previous year from 3.5 percent in December 2015, according to their median projections released by the central bank. Since 2012, the Fed chair has conducted a press conference after four of the Fed's eight yearly meetings - the ones that include new quarterly releases of Fed officials' economic projections. For us, the minutes were slightly hawkish, as the USA central bank is to start a discussion about shrinking its balance sheet at the next meeting.

LIVE updates from The BRIT Awards 2017
I think my mum and dad are going to love a little bit of Ed Sheeran and the whole Little Mix thing they're going to go nuts for. Organizers said the show will also include a tribute to George Michael, who died on Christmas Day at age 53.

On the one hand, Trump wants rates higher because savers have been punished by the Fed's extremely low interest rates.

It appears that while some members noted that a proposed $550 billion infrastructure plan and other stimulus moves from Trump could be a boon for economic growth, other members were concerned about the ultimate impact.

The latest minutes note that "a few" officials are in favour of raising interest "in a timely manner, potentially at an upcoming meeting" would increase the Fed's flexibility.

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Bureau of Indian Affairs will distribute in the camp, reminding protesters that the main camp will be evacuated at 2 p.m. Ryan Hignight. "A lot of our people want to be here and pray for our future", tribal Chairman Harold Frazier said.

"Participants emphasized that the Committee might need to change its communications regarding the anticipated path for the policy rate if economic conditions evolved differently than the Committee expected or if the economic outlook changed", the summary said.

The Fed had waited a full year to raise rates for a second time after its initial rate hike in December 2015. That could trigger inflation pressures and force the Fed to boost rates at a faster pace than financial markets expect. "What we have seen later yesterday and this morning is some euro strength", said Karl Steiner, a strategist with SEB in Stockholm.

Several policy makers raised the possibility of moving more aggressively than expected should inflation surge and the unemployment rate fall too much, the report said.

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