Federal Reserve unlikely to raise rates in 2019

Federal Reserve unlikely to raise rates in 2019

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A number of Fed policymakers in recent weeks have said the Fed need not rush any changes in its rate policy.

The FOMC minutes discussed that Fed officials showed no signs of urgency to change interest rates in 2019 even if the economy continues to strengthen. It's worth noting that U.S. inflation expectations have subsided in the weeks since the May Fed meeting.

During the FOMC Minutes from the May 1-2 Federal Open Market Committee meeting members elevated forecasts for full-year economic growth, stating that earlier worries they had about an economic decline had diminished.

"I believe at the next Fed meeting, we will see a more dovish Fed, one that is more inclined to cut rates this year", she added.

Risks to the US economic outlook, including trade uncertainty and Brexit, have receded but are still present, the US Federal Reserve said Wednesday.

At that point, with USA growth continuing, inflation "muted", and some global risks appearing to have eased, "members observed that a patient approach.would likely remain appropriate for some time.even if global economic and financial conditions continued to improve".

The May FOMC minutes detailed a reserved conversation among policymakers who believed that patience on rates would be appropriate for the foreseeable future.

"That said, these and other sources of uncertainty remained".

"Participants continued to view sustained expansion of economic activity, with strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective as the most likely outcomes", the minutes said.

While economic data has largely been positive - unemployment stands at 3.6 percent, a 50-year low, for example - inflation has remained elusive, removing the need for the Fed to hike rates to keep the economy from overheating.

Consistent with Fed Chair Jerome Powell's press conference after the meeting, participants observed "at least part of the recent softness in inflation could be attributed to idiosyncratic factors".

San Francisco Federal Reserve President Mary Daly on the outlook for USA economic growth, wage growth and the impact from the China tariff uncertainties.

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