RU² / March 18, 2019
“Everything came together, and ‘patient’ became the Fed’s new watchword”
Original Article: https://www.timesunion.com/news/article/Fed-set-to-signal-no-expectation-of-rate-hikes-13696999.php
The message the Federal Reserve is set to give after its latest policy meeting this week is going to be better than some originally expected. The statement is going to reflect some of the slowdown the United States had faced after the year end rate hike. It seems to be the investors will be happy to see a more hands off approach by the feds in 2019 vs. the four rate hikes had seen in 2018. Early projections had stated that the Feds would increase rates about 2 times throughout the year. With the update forecasts to downgrade the estimated growth due to the slowdowns have faced, some analysis stated that there could be only 1 to even no increase on rates. Last year the GDP grew 2.9%, which had been fastest pace since 2015. The budget plan Trump administration proposed last week forecasts the growth will reach 3.2% this year and stay around 3% for the next decade. This is far more optimist that any outside economists are projecting. Majority of them expecting the growth to weaken to just above 2 percent this year. For the Feds, this leaves them a key question whether the slowdown represents a soft landing of the economy, or is it something more alarming. The latest report coming out will highlight what should be expected in 2019 with the most recent slowdowns have seen since last meeting.
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