Fed Makes No Move on Interest Rates

At the FOMC (Federal Open Market Committee) Meeting earlier this week the “Fed” made no concrete announcements regarding the eventual increase in Interest Rates that is ultimately expected to happen. Although Janet Yellen (Federal Reserve Chairwoman) acknowledged that the Economy does seem to be gradually improving, she spoke in terms of a couple of  specific metrics that are seemingly being monitored with respect to their relation to any significant changes to Interest Rate Policy. One of these is “wage growth” because, in spite of the fact that the overall Unemployment situation has improved, increases in worker wages has stagnated. The other factor cited was inflation and, here again, Yellen pointed out that despite improvements the Fed’s goal of a 2% annual inflation rate has not been achieved. There was vague talk about the possibility of Rates increasing some time this summer, but it remains to be seen what will finally be the catalyst for any increase and when that will actually occur.