Less than officials of the Federal Reserve expect the central bank to raise interest rates more than once this year, policymakers have given a mixed picture of the US economy, where growth is picking up and job gains are slowing.
While the median forecast of 17 policymakers remained two quarts point increases this year, the number of officials who see a single gesture rose to six in a Round previous forecast in March according to projections released by the Federal Open Market Committee on Wednesday after a two-day meeting in Washington.
"the pace of improvement in the labor market slowed while the growth of economic activity appears to have picked up," the FOMC said in a statement after meeting, he left the target range for the federal funds rate unchanged at 0.25 percent to 0.5 percent, the first unanimous decision since January.
Fed expressed confidence that jobs will rebound, saying he expects "the labor market indicators will strengthen." he said that the "drag from net exports appears to have decreased" and housing has improved, while business fixed investment was "soft".
central bank reiterated that interest rates are likely to increase at a "gradual" pace, without referring to the statement at the next meeting in July or any other specific timetable for another increase .
previous meeting
in their previous meeting in April, most Fed policymakers said they were support an increase in June if the economy continued to improve, according to the minutes of the session. These intentions were thwarted, however, by the May employment report from the Labor Department, the worst gain in payroll since 2010.
The Fed said Wednesday that "although the unemployment rate decreased employment earnings fell. growth in household spending has increased. "
President Janet Yellen is scheduled to hold a press conference at 14:30 that will be closely watched for his views on the probability of a rate move when the committee meets next.
The vote was 10-0, with Kansas City Fed President Esther George supporting the decision after dissenting in March and in April in favor of an increase in quarter-point rate.
median projection
the median projection of officials for the federal funds rate at year end remained at 0.875 per percent, which implies two quarts point increases in the remaining four committee meetings. The median projection in the long term for the federal funds rate fell to 3 percent from 3.3 percent in March.
All 106 economists surveyed by Bloomberg News expected the Fed to leave rates unchanged at the meeting of interest. A separate survey last week showed that analysts projected two rate hikes this year, while they were divided over whether the next increase would take place in July or September.
Yellen and his colleagues struggled with contradictory US newer weeks economic data, they reflected when next to raise the federal funds rate. The committee raised the benchmark in December, ending seven years to almost zero.
A tightening labor market, signs of rising wages and a recovery in consumer spending prompted the Fed elbow to another increase, while a rate of the slowdown in employment creation, evidence of declining inflation expectations and the persistent risks from outside the United States provided for caution.
Brexit risk
One risk factor for the global financial markets will come to a head in a week when voters in Great -Bretagne decide in a referendum whether to remain in the European Union. Recent polls show gains for the "Leave" campaign weakened pound and yields on German 10-year bonds below zero for the first time resulted.
The FOMC Wednesday repeated a line from the previous statement that it "continues to closely monitor inflation indicators and the global economic and financial developments."
on the basis of fund prices fed futures, investors earlier on Wednesday saw the chance for at least a rate hike this year to below 50 percent, down from as high as 78 percent on May 24
Bloomberg
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