Source: Bloomberg
The Fed believes that the slowdown in the US in the first quarter was partly due to temporary factors and politicians with an appropriately accommodative monetary economy can grow at a moderate pace – according to a press release of the Federal Open Market Committee (FOMC). The Fed kept interest per cent, unchanged.
“The economic growth slowed down during the winter months, in part because of temporary factors” – written in the message after the April FOMC meeting.
“The growth pace jobs declined and under-utilization of labor resources has remained largely unchanged, “- added.
Fed officials announced they plan to raise interest rates this year, for the first time since 2006., but their decision will be based on 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 he sees 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.
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 increased 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 grew by 2.2 per cent. in terms of annualized qoq.
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, ruled that such a decision is possible in April.
Representatives of the Fed stressed in a statement released after the March meeting, when it will decide on interest rate increases will depend on the the quality of macroeconomic data from the US.
On Thursday, planned to 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.
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