Fed Rate Hike Doubtful, But Decision Could Answer Some Questions
The Fed will wrap up its two-day June meeting today on whether the economy can handle another interest rate hike to follow its move in December (the first rate increase in nearly a decade).
The meeting comes on the heels of mixed signals on the economy—May’s jobs report tanked, yet consumers are spending at high levels.
Economists told Bisnow they largely don't expect a rate hike, but the Fed’s statement and chairman Janet Yellen’s coming press conference should give some hints on the timing of future hikes, Bloomberg reports.
“We will be looking for exactly how they detail the recent weakness in the economy,” Stifel Nicolaus chief economist Lindsey Piegza tells Bloomberg, specifically pointing to the labor report. “The Fed will be much more willing to jump back on the bandwagon of a near-term interest rate increase if they see this as isolated.” [Bloomberg]