By Michael Flaherty and Howard Schneider WASHINGTON (Reuters) – The US Federal Reserve said Wednesday the weakening labor market and the overall economy, a monetary policy statement that he met only a few hours after data showing poor economic growth. This suggested that the central bank might have to wait until the third quarter to start raising interest rates. The policy statement the Fed leaves depending on the economic data they come out, in a system based on analyzing each of their meetings approach, while seeking to decide the date of the first interest rate hike since June 2006. However, 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 its statement. The central bank ended Wednesday’s policy meeting in April. The orientation of the Fed rate was very similar to that which gave last month. But unlike its March policy statement, this time the central bank effectively ruled out a rate hike at its next meeting. Although it makes possible a movement in June, the economic data does not match the picture. More …
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