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Federal Reserve isn’t ruling out further rate increases this year

The Fed expects economic expansion to slow to a more sustainable pace of around 2 percent

Federal Reserve Chairman Jerome Powell (Credit: Bloomberg)

Minutes from the Federal Reserve’s March 19-20 meeting reveal that a minority of policy makers left room for the possibility of interest rate increases before the end of the year if economic conditions improve, according to CNBC.

Data dependent and flexible: The Fed expects economic expansion to slow to a more sustainable pace of around 2 percent this year, and continues to be puzzled by low inflation. 

Worth Noting: Futures markets are currently pricing in no chance of an increase, and in fact a 55 percent chance that the Fed might cut rates, Bloomberg noted.

The Fed Minutes: “A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year… Some officials saw higher rates as appropriate later this year if economic growth continued above its longer-run trend rate, according to the minutes.”

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