(Lawrence Carrel – Forbes)
The era of Federal Reserve Chair Janet Yellen ended with a whimper as the Fed’s Federal Open Market Committee (FOMC) held its first meeting of the year Wednesday with a unanimous vote to not raise interest rates.
However, as the FOMC has said numerous times before, just be ready for rates to rise. In the statement released Wednesday, the FOMC said, the labor market continues to strengthen and economic activity has been rising at a solid rate. Gains in employment, household spending, and business fixed investment have been solid, and the unemployment rate has stayed low.
While over the past year overall inflation has stayed below the Fed’s target of 2%, market-based measures of inflation compensation have increased in recent months but remain low; survey-based measures of longer-term inflation expectations are little changed, on balance. Click here to read more.