Fed Officials Could Wait Longer to Raise Rates

Federal Reserve officials have made clear they won’t raise interest rates at their policy meeting Tuesday and Wednesday. And they’ve stopped using phrases such as “considerable time” and “patient” to signal how much longer they’ll wait to start lifting borrowing costs.

So the only suspense this week surrounds how their post-meeting statement will characterize the winter slowdown in U.S. growth. Several officials have said recently they think it was probably a temporary soft patch, and they expect to see a rebound in coming months.

A small number of policy makers still want to start raising their benchmark short-term interest rate from near zero this summer, but others sound increasingly inclined to wait until the fall or even later to act. Two say they want to wait until next year.

Attached are some key excerpts from Fed officials’ public remarks since their March meeting.


Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell