FOMC

The June FOMC statement was more positive in its assessment of activity than April’s, noting that the economy is expanding at a moderate pace and that “Since the committee last met in April, the pace of job gains has picked up and labour-market gains have improved further.” It seems clear that the US Federal Reserve remains on track to raise rates later this year, however, 2015 growth forecasts were revised down and unemployment rate forecasts were revised up. The average interest rate projections were actually lowered – despite the median being unchanged in 2015. Fed chair Yellen used the press briefing to emphasise that policy will remain highly accommodative even after the normalisation process begins and added that the importance of the first move should not be overstated.