Those watching the Fed for signals on its take of the economy predict the central bank will hold the short-term interest rate steady at 5.25% for the seventh meeting in a row. While there has been signs of softening in the market, particularly last quarter’s GDP and last week’s employment report, inflation remains a concern for the Fed with it remaining just out of the comfort zone (1-2%) at 2.2%.
Most agree that flexibility and data-driven decisions will be the highlights of the Fed’s comments.
"Bet on a Fed still on hold in May with their inflation bias intact, but with a somewhat softer view of current economic and inflation trends," said Scott Anderson, senior economist at Wells Fargo in Minneapolis.
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