The fed announced Wednesday that it would hold its benchmark interest rate at 0.25 percent.
“To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate,” the Fed said in its official monetary policy report. “In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.”
That assessment will consider measures of labor market conditions, inflation pressures, and readings on financial and international developments.
How long it does maintain the rate is up for debate, but only two of the 17 officials want to wait until 2016 to implement a hike.
The dot plot suggests the majority of the members want two interest rate increases before year end. The Fed has four more announcements planned for the rest of the year, with releases planned for July 28, September 16, October 27, and December 15.
Based on the information the Federal Open Market Committee has reviewed since the last meeting in April, it believes economic activity is expanding at a moderate pace after some moderation in Q1 2015.
“The pace of job gains picked up while the unemployment rate remained steady. On balance, a range of labor market indicators suggests that underutilization of labor resources diminished somewhat,” the Fed said. “Growth in household spending has been moderate and the housing sector has shown some improvement; however, business fixed investment and net exports stayed soft.”
“Nationally, foreign capital is having a heavy influence on global gateway cities,”Kasdin said.