Courtesy of Mish.
In today’s FOMC Statement the Fed says the labor market has strengthened, household spending is growing strongly, and economic activity is expanding at a moderate rate.
Supposedly, “near-term risks to the economic outlook have diminished”.
But “against this backdrop, 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.”
Stop Talking and Do It
Esther L. George, president of the Federal Reserve Bank of Kansas City dissented. She preferred to raise the target range for the federal funds rate to 1/2 to 3/4 percent today.
Door Open for September?
The Wall Street Journal reports Fed Leaves Door Open to Move as Soon as September.