As was largely anticipated, the Fed’s Federal Open Market Committee (FOMC) decided to leave the policy rate target unchanged at 4.25-4.50 per cent when it met last week.

In its Statement accompanying the decision, the Fed downplayed the Q1 negative GDP print, suggesting that idiosyncratic factors associated with a surge in imports accounted for that negative print and, further, that “recent indicators suggest that economic activity has continued to expand at a solid pace.” The statement added that the “unemployment rate has stabilised at a low level in recent months, and labor market conditions remain solid,” and also that “inflation remains somewhat elevated.”

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Stephen Miller

Stephen Miller is GSFM’s market strategist. His expertise in international economic and policy analysis, as well as domestic and global economic and financial market developments, has resulted in him becoming a regular commentator on central banks, rates and inflation.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.