However, the focus of the session was on Fed interest rate decision and the following statement. Federal Reserve policy makers signaled they’re open to raising interest rates in June, nodding to improvement in global financial markets and downplaying recent weakness in the U.S. economy. The Federal Open Market Committee omitted previous language that “global economic and financial developments continue to pose risks,” instead saying officials will “closely monitor” such developments, according to a statement released Wednesday following a two-day meeting in Washington.
The Fed left its benchmark interest rate unchanged. “Labor market conditions have improved further even as growth in economic activity appears to have slowed,” the FOMC said. “Growth in household spending has moderated, although households’ real income has risen at a solid rate and consumer sentiment remains high.” The committee reiterated that it will probably raise rates at a “gradual” pace.
There will be no data releases from the UK tomorrow. In the US session Unemployment Claims and GDP figures will be released. Analysts are predicting 0.7% increase in GDP, while Unemployment Claims should increase to 258,000.
Figures to watch:
Unemployment Claims (Thursday 14:30)
Advance GDP (Thursday 14:30)
Last modified on Wednesday, 27 April 2016
