Following through on indications in March, the Federal Open Market Committee on Wednesday offered no changes to its zero interest rate policy.
Not only did it not hike rates, it also removed all hints for what may lie ahead. Calendar references were deleted completely from the post-meeting statement.
The FOMC indicated after its March meeting that a rate hike in April was unlikely. The U.S. central bank has kept its key funds rate anchored near zero since late 2008, amid the financial crisis.
Officials have indicated a desire to raise rates at some point this year, with the market now anticipating a September increase.
The move came amid a struggling U.S. economy that barely registered any growth at all in the first three months of the year—a meager 0.2 percent increase in gross domestic product, thanks to a stubbornly frugal consumer, strengthening dollar and rough winter.
However, many market participants believe the Fed is still on its course of tightening, though the timing remains a question.
“It’s the long-term trend that matters to the Fed,” said Michael Arone, chief investment strategist for State Street Global Advisors’ U.S. intermediary business. “They’ve been very consistent on the idea of data dependence.:”
Full article: Fed: All calendar references removed (CNBC)