The Federal Open Market Committee met on April 29, 2015. Below are the two key takeaways:
First, 1Q 2015 estimates for GDP just came in and they are pretty bad. The Bureau of Economic Analysis reports GDP as +0.2% for the first quarter. Basically, it’s as close to a recession as you’ll ever want to get. This isn’t a big surprise to most economists, who had noted the weaker earnings trend, but it’s still a disappointment.
Second, the Federal Reserve published its latest report noting the current economic slowdown, which reduces the chances for the inevitable increase in short term interest rates in June. The futures market still expects rates to go up this year, possibly delaying the anticipated rate hike to September.