Published: Fri, May 12, 2017
Business | By Patricia Jimenez

Federal Reserve Leaves Interest Rates Unchanged

Economists said policymakers were likely to view the raft of soft data as temporary.

The reprieve consumers have enjoyed during the past decade when the central bankers held rates steady is likely to end this year as more than one increase is possible, said McBride.

The U.S. Federal Reserve is expected to hold interest rates steady at its meeting this week as it pauses to parse more economic data but may hint it is on track for an increase in June.

5-year +5.1 bps @ 1.854%. Wednesday's statement offered no new details.

A Caixin reading on China's service-sector activity hit its lowest level in almost a year for April on Thursday, adding to concerns about the country's economic health.

USA stocks were little changed as gains in technology stocks, led by Apple, countered the weak reports.

Metal prices extended their biggest daily decline this year on Thursday, amid a firmer dollar and concerns about Chinese demand for commodities like steel and iron.

Fire continues to scorch Georgia wildlife refuge; residents evacuated
Shifting winds blew the fire to the north overnight and more growth could happen today as winds shift again to the west. George, Canaday Loop and Moniac and anyone located in the southern half of Charlton County, including the Georgia Bend.

Capital Economics Chief US economist Paul Ashworth comments, "We don't expect that will prevent the Fed from hiking interest rates again at the June meeting, at least not as long as employment growth rebounds in April and May".

Weak U.S. April auto sales data released on Tuesday added to recent worries about the outlook for the U.S. economy, which grew at its slowest rate in three years in the first quarter of the year.

Employers continued to hire at the start of 2017, averaging 178,000 net new jobs a month in the first quarter, and signs of labor-market tightness suggest wage growth will pick up further.

While it gave no explicit direction, the committee pointed to a resilient jobs market - with unemployment running at 4.5% and pay growth rising - coupled with inflation "running close" to its 2% target, as evidence the economy remained strong despite weaker-than-expected first quarter growth. We continue to expect a 25bp hike in June. On Monday, the government said USA consumer spending stalled in March for a second straight month. "That bodes well for consumer spending in the second quarter", Reuters said. It had actually been up 2.4 percent over the past year, which is slightly better than the 2.2 percent year-over-year gains we had in February.

A decline in USA new vehicle sales for April, following a disappointing March is prompting worries that the industry, which has seen a almost uninterrupted boom since 2010, may be on a downward swing.

Personal consumption, a measure of what households spent on everything from groceries to dental care, was unchanged in March after failing to rise in February, the Commerce Department said Monday.

Like this: