Wednesday, November 2, 2016

Still Waiting

   Those expecting a boost in interest rates to settle an uncertain economy will have to wait for Christmas or even later, as the Federal Reserve Board once again decided to take no action on its target rate for Federal Funds.
   The Fed's Open Market Committee noted that the case for a boost "has continued to strengthen" from good economic signals, but the agency decided "for the time being, to wait for some further evidence of continued progress."
   Part of that decision may also be based on an unwillingness to be perceived as meddling in politics, since the presidential election is less than a week away.
   In any case, it's no surprise that the Fed is holding off, because while the economy is doing OK, it's not exactly a gangbuster velocity that would call for any move to tap the monetary brakes.

No comments:

Post a Comment