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Estimate of Interest Rate Increases For 2016
By: Fainting Goat
Concluding their policy meeting on May 4, 2016, Federal Reserve officials left interest rates unchanged and gave no clear signal of a rate increase in June.
The Fed's assessment of the American economy was mixed. Officials contrasted the relatively strong labor market to the slowing growth in the overall economy which has been hampered by sluggish business investment and exports.
The Fed expect's "economic activity will expand at a moderate pace and labor market indicators will continue to strengthen."
The Fed in December raised its benchmark short-term interest rate by a quarter point after keeping it near zero for seven years. Since then, amid slowing global growth and volatile financial markets, Fed officials have reduced their estimate of rate increases to just two more for this year.
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