U.S. Federal Reserve Holds Rates Steady

May 2, 2018 Edward Golding

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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 Investment Management and Strategy team at MD Financial Management. He oversees the Canadian, Dividend and U.S. equity mutual funds and investment pools at the firm.

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