The Federal Reserve will have a meeting of policymakers this week, which will perhaps shed some light on an economic forecast with arrows pointing in every direction imaginable. Analysts don’t expect the Fed to raise interest rates this month, but their comments could indicate changes in July and future rate hikes.
Fed Chairwoman Janet Yellen’s recent comments about some less-than-spectacular job gains numbers essentially put the nail in the coffin of any rate hikes, as far as June is concerned. But Yellen also emphasized that you can only draw so much from one month of data and that she fully expects job gains to look better come July.
Ideally, the Fed won’t constitute a rate hike until inflation speeds up a bit. There’s been a bit of a lull after the energy price-driven surge we witnessed early in the year. The bright spot in the American economy over the last couple months has actually been the housing market, with a healthy 6.6% jump in April.
We’ll know more by the end of the week.