Investors once again have their eyes on the Federal Reserve of the United States who are expected to come with a rate decision tomorrow after another policy meeting.
The American economy has been performing very well. Inflation and wages are growing steadily, and the yields on 10-, 5-, and 2-year Treasury bonds are increasing. In general these are signs of a healthy economy, and one that can use an interest rate increase.
Nevertheless, the Federal Reserve has vowed to be extremely careful with the way they are raising interest and to not rush it needlessly. Since they implemented a rate hike in late March many analysts feel that now is too early for another rate increase, with the probability of it occurring now at around 35%. It is far more likely to see a summer hike, perhaps in June or July.
The Federal Reserve have promised two more rate increases before the year’s end.
