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News & Press: Industry

Fed Leaves Rates Unchanged, With Hike Seen Next Month.

Thursday, May 3, 2018   (0 Comments)
Posted by: Alyce Ryan
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AICC, through its membership in the Council of Manufacturing Associations, is pleased to present the "Manufacturing Economic Daily Newsletter” from the NATIONAL ASSOCIATION OF MANUFACTURERS (NAM).

USA Today (5/2, Davidson) reports the Federal Reserve “held its key interest rate steady Wednesday but noted that inflation has climbed close to its 2% goal, paving the way for another rate hike in June.” The New York Times (5/2, Tankersley, Subscription Publication) portrays Fed policymakers as “acknowledging rising inflation but providing little indication” they “are worried about a sudden, rapid escalation in prices or an abrupt slowdown in economic growth that could alter its gradual pace of rate increases.” Bloomberg News (5/2, Condon) notes “the decision to maintain the federal funds target range at 1.5 percent to 1.75 percent was a unanimous 8-0.”

 

        The Wall Street Journal (5/2, Timiraos, Subscription Publication) says in its statement, the Fed provided nothing to dispel market expectations that it would hike rates again next month. The AP (5/2, Crutsinger) quotes the Fed as saying, “Inflation on a 12-month basis is expected to run near the committee’s symmetric 2 percent objective over the medium term.” The piece explains that the “use of ‘symmetric’ suggests that Fed officials might be willing to let inflation run slightly above its 2 percent target for some time, given that inflation has run below the target for six years.” Reuters (5/2) reports officials “also downplayed a recent slowdown in economic and job growth, saying activity had been expanding at a moderate rate and job gains, on average, had been strong in recent months.” 

 

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