Wednesday, March 16, 2016

"Economists React to the Fed Decision..."

From Real Time Economics:

...‘They Do Not Appear To Be in a Rush’
The Federal Reserve held its benchmark lending rate steady Wednesday. Newly released economic projections indicated there would be two interest-rate increases this year, compared with four projected increases when officials met in December. Here’s what economists had to say.

“Fed officials expect/hope to be tightening again this year, but they do not appear to be in a rush as they continue to worry about ‘global economic and financial developments.’ The likelihood of a move as soon as April certainly looks low now.” —Jim O’Sullivan, High Frequency Economics

“The Fed has consistently noted that its policy is being driven by data, which makes today’s decision somewhat worrisome. With unemployment at 4.9%and core CPI at 2.3%, the lack of a rate hike implies that the Fed has significant underlying concerns about the U.S. economy.” —Jason Schenker, Prestige Economics

“The Fed has essentially moved, in our view, from fantasy to a more realistic assessment of the U.S. economy.” —Steve Blitz, ITG Investment Research