“Federal Reserve officials could express more caution about the U.S. economy’s recovery after their meeting this week, giving them additional reason to keep short-term interest rates close to zero for a while.
The three meetings of the Fed’s policy-setting body so far this year have all ended with the U.S. central bank giving a gradually more upbeat view on the economy as it slowly emerged from the abyss. This time could be different.
Since the last Federal Open Market Committee meeting April 27-28, Europe’s debt crisis has led to a decline in U.S. stocks prices and brought a renewed feeling of uncertainty in financial markets. Meanwhile, improvements in the U.S. jobs market have stalled and inflation has continued to slow down from already low levels, a strong sign of the big slack still left in the U.S. economy.” Read more.
“Fed Watch: Europe Debt Crisis May Lead to More Cautious FOMC”
Luca Di Leo
Wall Street Journal, June 22, 2010.
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