Fed ‘should be able to sneak in one hike’ this year

SINGAPORE (July 28): As widely expected, the Federal Reserve has decided to keep the target range for federal funds rate at 0.25-0.5% following its latest Federal Open Market Committee (FOMC) meeting on July 26-27.

Noting soft business fixed investment despite strong-growing household spending, inflation that remains below the committee’s 2% long-term objective and market-based measures of inflation compensation that remain low,  the committee says in a Wednesday statement that it seeks to “foster maximum employment and price stability” with its decision to not raise interest rates.

Michael Metcalfe, head of Global Macro Strategy, State Street Global Markets, believes that the possibility of an interest rate hike in September is returning, although it is a slim one.

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