U.S. Outlook: Dissecting FOMC intentions
The Federal Reserve remained coy in its July statement about when to initiate the first Fed funds interest rate hike.
For more on this and other developments this week, see my full report. Highlights are outlined below, followed by a link to the full U.S. Outlook report, delivered on July 31.Key observations:
- The Fed continues to inch closer to its monetary policy goals.
- We are forecasting another net 224K nonfarm jobs were created in July, with the unemployment rate holding steady at 5.3%.
- If it wasn’t for continued lackluster consumer inflation rates, the Federal Reserve would have already begun to raise rates.
- There does appear to be a growing realization in the Treasury market that the Fed will be moving soon