Market Wire, North America

The Federal Reserve’s policy committee left benchmark rates unchanged this afternoon – but put the conditions in place for a hike in July, broadly matching market expectations for a “skip” in the central bank’s monetary tightening trajectory. At the conclusion of its two-day meeting in Washington, the Federal Open Market Committee unanimously voted to maintain the target range for the federal funds rate to 5.00-to-5.25 percent, with no dissents in favour of a smaller or larger move. In the – broadly unchanged – official statement setting out the decision, policymakers said “Holding the target range steady at this meeting allows the Committee...

The Federal Reserve’s rate-setting committee raised benchmark rates by a quarter percentage point this afternoon, and – somewhat surprisingly – explicitly put the conditions in place for inaction at upcoming decision dates. At the conclusion of its two-day meeting in Washington, the Federal Open Market Committee unanimously voted to raise the target range for the federal funds rate to 5.00-to-5.25 percent, with no dissents in favour of a smaller or larger move. The increase brings US rates back to levels last reached in August 2007. In the official statement setting out the decision, policymakers noted “Economic activity expanded at a...