FOMC Continues to Delay Rate Hike
The Federal Reserve’s Federal Open Market Committee (FOMC) published the official meeting minutes from its last meeting, which took place on April 28 and 29, 2015. Aligning with statements following the meeting, the meeting minutes reveal that the Federal Reserve will likely refrain from raising interest rates on June 16, 2015, at the next FOMC meeting.
The Federal Reserve is expected to wait on economic performance data from the second quarter before deciding to raise the federal funds rate from rock bottom lows. The meeting minutes state that “Participants continued to judge that it would be appropriate to raise the target range for the federal funds rate when they had seen further improvement in the labor market and were reasonably confident that inflation would move back to its 2 percent objective over the medium term.” Upon the announcement yesterday, Thursday, May 21, 2015, the dollar fell against the euro, which jumped up 0.3 percent.
- Federal Reserve Press Release: http://www.federalreserve.gov/newsevents/press/monetary/20150520a.htm
- FOMC Meeting Minutes: http://www.federalreserve.gov/monetarypolicy/files/fomcminutes20150429.pdf