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Fed keeps options open for July

Ian Kernohan, Economist

16 June 2016

The US Federal Reserve (Fed) have noted the recent soft payrolls report, while acknowledging that growth in economic activity has picked up. This statement does not give the green light for a rate rise as soon as July, but it does keep the option open should the labour market data improve over the coming weeks. Any adjustment in the stance of monetary policy is still expected to be gradual. There was no specific mention of the Brexit referendum in the statement, but no doubt the Fed will be watching developments on that front and the likely impact on financial markets.

The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not get back the amount originally invested. The views expressed are the author’s own and do not constitute investment advice.