Mohammed Kazmi, Portfolio Manager for UBP's Global & Absolute Return Fixed Income team, breaks down the FOMC meeting taking place today, where the committee will announce its interest rate decision and Jay Powell will host a press conference.
Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising moderately so far this year.
The FOMC voted to keep the target Fed Funds rate at between 0-0.25% at its April meeting. They continued to state that conditions warrant "exceptionally low levels of the federal funds rate for an extended period."
The Fed announed following its FOMC meeting that it would keep rates unchanged and extend debt purchases into the first quarter despite last week's statement by Bernanke that the recession is "probably" over.