The Federal Open Market Committee (FOMC), chaired by Jerome Powell, concluded their 2-day meeting, where they unanimously voted to keep the benchmark Federal funds rates unchanged in a range of 1.75 percent – 2 percent.
With sustained economic growth and strong job gains, the outlook is hawkish with a gradual increase over the coming meetings. The upgrade of economic assessment has led to an expectation of a hike in September.
The policy stance remains accommodative with inflation near 2 percent target and household spending growing strongly. US Inflation has picked up to 2.2 percent in the 12 months ending June.