Washington, DC, EUA.-The US economy and the labor market continue to strengthen, said Wednesday the Federal Reserve leaving the door open to a possible increase of rate when officials US central bank will meet again in September.
After a two-day meeting, members of the monetary policy committee of the Fed believed that the economy had overcome the slowdown in first quarter, “expanding moderately”, despite a drop in the energy sector and headwinds from abroad.
The central bank particularly highlighted “the strong employment growth” in recent months. “In sum, a series of labor market indicators suggest that the underutilization of labor resources has declined since early this year,” he said Fed in its policy statement that interest rates remained without changes.
The text highlights an improvement in vision of the Fed on working conditions since its June meeting.
The statement will likely strengthen expectations of a rate hike at the meeting of the Fed in September. The US central bank has kept interest rates close to zero since December 2008 as part of its efforts to boost the economy after the financial crisis 2007-2009.
However, the Fed offered no clear signal on its plan for rate . Instead, he said he wanted to see “a greater improvement in the labor market” and gain more confidence that low inflation will accelerate towards its medium-term target of 2 percent.
The statement Federal Committee on Open Market also retained the previous text to indicate that the risks are “almost balanced” suggesting that the Fed is still more concerned about a new turn in the economy instead of a quick acceleration inflation.
Officials Fed and market analysts have been assessing the economic situation to determine if the weak growth in the first half of the year pointed to the beginning of the end of the economic expansion or whether it was merely a pause.
The verdict seems more firm. “The Fed is taking small steps toward up rate . It has advanced enough in the labor market so that the Fed only needs a little more evidence to say that it is time, “Brian Jacobsen, chief strategist at Wells Fargo Funds Portfolio Management.
Most economists forecast that US economic growth will accelerate after a warm progress in the first half of the year and the Fed will begin its monetary tightening in September, according to a Reuters poll released last week.
n Thus, the major banks Wall Street still point to September as the most likely for the Fed starts its tightening, according to another Reuters poll released earlier this month moment.
While inflation remains weak, the statement drew an economy that continues to advance, with an unemployment rate of 5.3 percent and a stable job creation.
Without any meeting scheduled for August, the Fed have two months to analyze economic data before deciding whether raises rates for the first time since 2006. There was no dissent among members of the Fed for the decision.
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