Fed Rates the Odds

   The Federal Reserve Board has voted to hold interest where they are, while the Central Bank of Japan may boot theirs.
   It's no surprise that the U.S. central bank has stalled yet again on raising key interest rates, since the nation's economy has not been growing as rapidly as most experts would like to see. That's not to say it's in trouble; just that the gangbusters music theme has not hit the top of the economic charts.
   Meanwhile, the Japanese economy remains stalled, despite a negative interest rate promoted by that nation's central bank. Finally, the bank admitted that its efforts weren't working, and announced that below-zero interest rates weren't doing the job. It's not yet clear what the new target rate will be, however.
   Separately, the U.S. Fed reported the results of its recent Open Market Committee meeting, and said it would hold its target federal funds rate near zero, where it has been for months.
   "The case for an increase in the federal funds rate has strengthened," the Fed said, but the agency had decided, "for the time being, to wait for further evidence of continued progress."
   Best guess: After Election Day. But which way the board goes may depend on who wins the presidency and what the nation's economic reaction is.
   This is not to say the Fed is influenced by politics, much less following orders given by politicians, even though many claim it is. The Fed cherishes its independence, but it can only influence monetary policy. Fiscal policy, which primarily means government spending, is set by Congress and the President.
   So while the Fed  does have some influence on economic health and growth, the government also plays a major role. And depending on how consumers and businesses react to a new Administration, the Fed will consider its monetary actions from an economic viewpoint, not political.