Wednesday’s Federal Reserve meeting ended with no significant developments. Sure, the Fed announced that unemployment is high and that growth has slowed down, but that’s been (painfully) obvious since the end of the first quarter.
It is likely that the November election has also made the Fed hesitate on making any long-term decisions, as it may be seen as a ploy to help either candidate win. The official report mirrors the Fed’s statement that it is concerned about the stalling economy, noting that “the Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability.” About all that can be concluded here is that rates will stay low for the foreseeable future.
Europe’s policy-makers will meet on Thursday.