U.S. Federal Reserve Holds Rates Steady

May 2, 2018 Edward Golding

Blog image

As expected, the U.S. Federal Reserve today announced that it will leave interest rates unchanged. The key short-term rate currently stands at 1.50% to 1.75%, with the Fed indicating that it expects ‘further gradual increases’ in interest rates later in the year.

In its statement, the Fed focused on key themes driving its decision-making, including:

  • Strong job gains in recent months combined with low unemployment
  • A moderation in household and fixed investment spending
  • Inflation expectations in line with the Fed’s 2% target

We’ve seen a slight positive reaction to the announcement in equity markets and little change with the Canadian dollar relative to the U.S. dollar. 


About the Author

Edward Golding

Edward Golding, CFA, MBA, is an Assistant Vice President with the Multi-Asset Management team at MD Financial Management. He oversees the Canadian, Dividend and U.S. equity mutual funds and investment pools at the firm.

More Content by Edward Golding
Previous Article
U.S. Unemployment Hits 17-year Low: How Good Can It Get?
U.S. Unemployment Hits 17-year Low: How Good Can It Get?

Like taking the temperature and blood pressure of a patient, measuring employment is perhaps the best way t...

Next Article
Forget the Headlines: Stick to Investing Basics
Forget the Headlines: Stick to Investing Basics

Every day there’s some hot new topic that’s driving headlines. That’s why it’s so important not to get dist...


Subscribe to our Newsletter

I allow MD Financial Management (including MD Financial Management Inc., MD Management Limited, MD Private Trust Company MD Life Insurance Company and MD Insurance Agency Limited), the Bank of Nova Scotia and other members of the Scotiabank group of companies (“Scotiabank Members”) to send me electronic messages (such as emails and SMS text) about their products and services, offers, events, and other valuable information as well as information about the products and services of other Scotiabank trusted partners that may be of interest to me.  This consent is being sought on behalf of each MD Financial Management and Scotiabank Member which includes any company(ies) or person(s) that form a part of the Scotiabank group of companies in the future. View the MD Privacy Policy here.
Thank you!
Error - something went wrong!