The US Federal Reserve said the weakening labor market and the overall economy, a monetary policy statement.
This suggested that the central bank might wait until the third quarter of year to raise interest rates.
The central bank acknowledged that there are bumps in the economy, making it more likely that you are not ready to raise rates until at least September.
” The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when you see new improvements in the labor market and is reasonably confident that inflation will move back to its medium-term target of 2 percent, “the Fed said in his statement.
Unlike its March policy statement, this time the central bank effectively ruled out a rate hike at its next meeting.
The futures contracts US interest rates fell slightly in the short term after the declaration of the Federal Reserve.
Traders bet that December will probably mark the beginning of the cycle of rate hikes, based on CME Fedwatch, which follows the expectations of rate hikes futures contracts using federal funds -. the reference rate
The Fed acknowledged that economic growth “slowed during the winter months (boreal), partly reflecting factors transient “.
In March, the Fed described the growth as a more moderate pace.
Economists see September as the likely time for a rate hike, while investors consider a temporary horizon even further, with futures contracts aiming to December.
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