US Fed expected to again hold rates steady

AFP, WASHINGTON: In 1890, the psychologist William James wrote that there was “no more miserable human being than one in whom nothing is habitual but indecision.”
Indecision is certainly not the habit of Federal Reserve policy makers. But as a divided Fed gathers next week to consider interest rates, they may yet again revise positions that have repeatedly shifted since December.
Most observers do not expect the Federal Open Markets Committee, which sets monetary policy, to raise the crucial federal funds rate when they meet on Tuesday and Wednesday in Washington.
“I think it’s very plausible you’ll see zero” change, said Dean Baker, co-founder of the Center for Economic and Policy Research. Policy makers do not want to surprise markets, he added.
“The last thing on earth that they want to do is a rate hike that isn’t anticipated.”
For markets, the last eight months have still been an emotional roller coaster. 

US Fed expected to again hold rates steady

AFP, WASHINGTON: In 1890, the psychologist William James wrote that there was no more miserable human being than one in whom nothing is habitual but indecision. Indecision is certainly not the habit of Federal Reserve policy makers. But as a divided Fed gathers next week to consider interest rates, they may yet again revise positions that have repeatedly shifted since December. Most observers do not expect the Federal Open Markets Committee, which sets monetary policy, to raise the crucial federal funds rate when they meet on Tuesday and Wednesday in Washington. I think its very plausible youll see zero change, said Dean Baker, co-founder of the Center for Economic and Policy Research. Policy makers do not want to surprise markets, he added. The last thing on earth that they want to do is a rate hike that isnt anticipated. For markets, the last eight months have still been an emotional roller coaster.