Federal Reserve Leaves Rates Unchanged
Photo: Stefan Fussan
After the Federal Reserve raised rates for the first time since 2006 back in December, the market seems to think it was a wrong move. And believe the Fed should leave interest rates unchanged.
Washington post reports, “markets now think that the Fed will undershoot its inflation target as far out as the five years from 2021 to 2026 by even more than they used to.”
Crowd urging #Fed to "wait" on hikes miss the point. Economy is getting worse, not better. Correct move is to ease. pic.twitter.com/2Lct6w9qzr
— Jim Rickards (@JamesGRickards) January 27, 2016
The Fed released today at 2:00 pm that it will leave rates unchanged.
And stated, “Given the economic outlook, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”
Federal Open Market Committee statement: https://t.co/eqnIWHxpRZ #FOMC
— Federal Reserve (@federalreserve) January 27, 2016
Overall they acknowledge global problems are an issue but believe better times are ahead. Because even though our economic growth slowed during our fourth quarter last year, our labor market went upwards.
Therefore the U.S. dollar will continue to gain its strength and will still give U.S. travelers the most value for their dollar.
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