Fed Leaves Rates Unchanged

by Marilou Long on February 2, 2017

in Economic Indicators,Fed policy,interest rates

Most strategists think that the Fed will raise interest rates three times in 2017.  At the first meeting of the year, rates were left unchanged.  From the linked NYT article:

WASHINGTON — The Federal Reserve is waiting for more information about the Trump administration’s economic plans, just like everyone else.

After its first policy making meeting of the year, the Fed said on Wednesday that its economic outlook remained essentially unchanged since its previous meeting in December. The nation’s slow-and-steady economic expansion has continued, with little sign in the latest data that it is flagging or accelerating.

And as expected, the Federal Open Market Committee, which makes monetary policy, left the Fed’s benchmark interest rate unchanged.

The question is what comes next.

Fed officials said in the weeks before the meeting Wednesday that their uncertainty about the outlook had increased. President Trump has proposed significant shifts in economic policy — including changes in taxation, regulation and trade — that could affect growth.

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