Fed: US economy will grow at a moderate pace – Polish Radio

– Economic growth slowed down during the winter months, in part because of temporary factors – in the communication of the FOMC after the April meeting. – The pace of growth in jobs declined and remained under-utilization of labor resources without major changes – added.

Fed raise rates?

Fed officials announced that they plan to raising interest rates this year, for the first time since 2006., but their decision will be based on the current macroeconomic data. – Although the increase in production and a fall in unemployment slowed in the first quarter, the Committee still believes that, with an appropriately accommodative monetary policy, economic activity will grow at a moderate pace – written.

The Fed reiterated that it will raise interest rates when see further improvement in the labor market and will have a “reasonable belief” that inflation returns to the target of 2 percent. – It is expected that inflation will remain at the current low level in the short term, but the Committee expects that it will be gradually increased to a level of 2 percent. in the medium term – written.

The first data for the first quarter of 2015.

On Wednesday, the US Commerce Department reported the first calculation of US GDP in the first quarter. US Gross Domestic Product in the first quarter of 2015 years rose by 0.2 percent. in terms of annualized qoq. Analysts had expected GDP growth in the first quarter of 2015 the 1.0 per cent. in terms of annualized qoq. The indicator will still be subject to two revisions: in May and June. The growth rate was lower than in the fourth quarter of 2014, when US GDP increased by 2.2 percent. in terms of annualized qoq.

April rather not bring changes in interest

The US Federal Reserve in a statement issued after the March meeting resigned from the inclusion of the word “patient” in relation to term interest rate hikes. The Fed has signaled the same approach to interest rate hikes, however, it ruled that such a decision is possible in April.
Fed officials said in a statement released after the March meeting, when it will decide on interest rate increases will depend on the quality of macroeconomic data from the US.

What were the revenue and expenditure of Americans
on Thursday is planned publication of data on expenditure and income Americans in March. The market assumes that expenditures increased by 0.5 percent. while income will increase by 0.2 percent. On Friday, the reading will be given in the industry ISM index, the indicator has a note increase to 52 points. with 51.5 points. in March.

PAP / asop