Fed says U.S. economy strong enough to handle rate hike

reuters.com ^ | Howard Schneider and Jonathan Spicer

[BenLurkin]

The U.S. economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, but concerns remain over the recovery of the labor market, U.S. Federal Reserve officials said on Wednesday.

With the economy still on track to grow as much as 2 percent for the year, the central bank's latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year.

Fed Chair Janet Yellen, however, emphasized that the rate decision was still up in the air and rested squarely on further improvement in the labor market - renewing her focus on a longstanding concern.

In a press conference following the end of the Fed's two-day policy meeting, Yellen said she wanted "more decisive evidence" that labor markets were healing, and that wages would increase beyond their current "subdued pace."

Even as the Fed appeared to be approaching a decision to proceed with a rate hike as soon as September, "some cyclical weakness in the labor market remains," Yellen said, pointing to the low labor force participation rate and the high level of part-time employment.

[Chode]

silly me... and here i thought the U.S. Economy Contracted 0.7% in First Quarter

http://www.nytimes.com/2015/05/30/business/economy/us-economy-gdp-q1-revision.html?_r=0

[1raider1]

With apologies to Rocky and Bullwinkle

Yellen, “Hey savers, watch me pull a rate increase out of the end of this year.”
We retiries, “...but you’ve been saying that for the last six years.”
Yellen, “This time, for sure!”

[BenLurkin]

Excellent

[familyop]

Except that Fed officials are expecting the funds rate to stay at 0.625% through the end of the year, and Yellen said that there are no sure signs of wage growth.

[E. Pluribus Unum]

But the US feral government ain't.

Once the rate starts rising on the national debt the whole house of cards will come tumbling down.

[RightGeek]

But the US feral government ain't. Once the rate starts rising on the national debt the whole house of cards will come tumbling down.

Watch the debt service portion of the budget explode. Really exciting stuff and quite a gift to the next President.

[Nachum]

[Chode]

now wait a minute... SOMEBODY isn’t telling the truth here

Fed Holds Off On Interest Rate Hike, Downgrades Economic Forecast
Source: Los Angeles Times

By Jim Puzzanghera

Federal Reserve policymakers on Wednesday kept the central bank’s benchmark short-term interest rate near zero, opting against the first increase since 2006 after determining the economy still isn’t strong enough to handle it.

Fed officials sharply downgraded their economic forecast for this year. They projected the economy would grow between 1.8% and 2% this year, well below the range of 2.3% to 2.7% in its last forecast in March.

If they’re correct, annual growth would be the worst since 2011 and would be far from the breakout performance some economists had hoped for this year.

In a statement after its two-day policymaking meeting, Fed officials said the economy “has been expanding moderately” ******after having improved little during the first quarter.*****

so now a contraction of .7% is considered expansion in new speak i guess

Read more: http://www.latimes.com/business/la-fi-federal-reserve-interest-rate-20150617-story.html

[rdcbn]

your data is out of date.

National debt is not $16 trillion anymore, now its about $18.8 trillion.

[rdcbn]

Don't worry, well just borrow and spend our way to false prosperity like Obama has done since taking office.

Or maybe not

http://www.washingtonexaminer.com/budget-office-u.s.-debt-picture-has-worsened-dramatically/article/2566337

[Chode]

crank-em up boys...