Fed Says April Rate Hike is All But Off the Table

Home / Daily Dose / Fed Says April Rate Hike is All But Off the Table Servicers Navigate the Post-Pandemic World 2 days ago Federal Funds Target Rate Federal Open Market Committee Federal Reserve FOMC 2016-04-06 Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago The Federal Open Market Committee (FOMC), the policymaking arm of the Federal Reserve, has already met twice this year without another rate hike following December’s historic liftoff. Now, according to the minutes from the March FOMC meeting released Wednesday, the federal funds target rate will most likely remain at its current 0.25 percent to 0.50 percent range until at least the June FOMC meeting, which means a rate hike would be off the table for the FOMC meeting in April.The Fed noted in the minutes that “raising the target range as soon as April would signal a sense of urgency (FOMC participants) did not think appropriate.” The central bank remains cautious in moving forward with future rate hikes largely due to the fact that it would be easy to raise the rates during an economic upturn, but considerably more difficult to lower the rates in response to an adverse shock to the economy.“Concerns about the possible economic impact of financial turbulence early in the year motivated participants to err on the side of caution while considering the appropriate timing of the next rate increase,” said Robert Denk, AVP for Forecasting and Analysis at the National Association of Home Builders (NAHB). “Early indications are that U.S. economic conditions have largely recovered from the sharp asset price movements in the opening weeks of 2016, but the committee decided it would be prudent to wait for additional information to confirm this view. This caution was a decisive factor in the decision not to raise the funds rate at the March meeting, but meeting participants acknowledged that relatively little additional information would be available before the April meeting.”The notes from March’s meeting released on Wednesday indicate that FOMC participants expect economic conditions to warrant two rate hikes in 2016, but as always, the decision will be driven by economic data; according to Denk, if the recent economic gains are sustained in the next two months, a rate hike at the June FOMC meeting is a “strong possibility.”“The minutes from the FOMC’s March meeting reflect a growing gap in the performance and outlook of the U.S. economy compared to the global economy,” said Curt Long, Chief Economist at the National Association of Federal Credit Unions (NAFCU). “While the committee managed to show a relatively united front in taking a wait-and-see approach to emerging risks in the global outlook, that may not be the case later in the year.”Long continued, “If the domestic economy continues to advance at a moderate pace while global risks remain, we may see sharper disagreements between the hawks and doves on the appropriate monetary policy response later in the year.”Click here to view the FOMC minutes from the March meeting. Data Provider Black Knight to Acquire Top of Mind 2 days ago April 6, 2016 1,927 Views in Daily Dose, Featured, Government, News Share Save The Best Markets For Residential Property Investors 2 days ago About Author: Brian Honea Related Articles Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: GAO Notes Problems in Financial Regulatory Framework Next: Credit Unions are Having Trouble Closing with TRID Tagged with: Federal Funds Target Rate Federal Open Market Committee Federal Reserve FOMC The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Fed Says April Rate Hike is All But Off the Table  Print This Post Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe read more

Colombian Government to Seek Peace Talks with FARC

first_img I agree with President Juan Manuel Santos that it is necessary to seek peace for Colombia It is good for the Colombian people that their authorities and the guerrillas took the decision, as intelligent beings, of beginning peace talks, because this war causes delays in their economic and social development, and I am happy about the Colombian brothers. Al result of the internal conflict, they seek refuge in other countries, especially Ecuador, causing more problem to other countries and to themselves. Hopefully it is a dialogue of consensus and not of popularity and sensationalism but of truth and at heart. On August 27, Colombian President Juan Manuel Santos confirmed that his government conducted “exploratory conversations” ahead of possible peace talks with the FARC communist guerrillas, in arms for almost 50 years, and the results will be known in the coming days. “From the first day in my government I have complied with the constitutional obligation to seek peace. Exploratory conversations with the FARC [Revolutionary Armed Forces of Colombia] to seek an end to the conflict have been developed”, Santos said in a televised address to the nation. The president pointed out that the Colombian Military Forces would not cease their operations nor will they reduce their presence in the national territory while carrying out contacts with the guerrillas. Also, he said he knew the National Liberation Army (ELN) guerrilla was interested in participating in these “conversations aimed at ending the violence” and were open to participating in a possible dialogue. Santos said one of the basic premises is that “any process must lead to the end of the conflict, not its extension.” The president did not specify the location of the conversations or who participated in them. He simply said, “In the coming days the results of the rapprochement with the FARC will be announced.” Versions leaked by the press indicated that contacts have taken place in Cuba, with Venezuelan participation, and that they would continue the next stage in Norway beginning in October. Meanwhile, Attorney General Eduardo Montealegre, said that Colombia “must move toward a peace process.” In recent years, the guerrilla has lost territorial control and has seen the fall of its top leaders, Mono Jojoy and Alfonso Cano, but it is still very active in certain areas of Colombia, with new strategies of bomb attacks and causing havoc among the civilian population. Daniel García Peña, former Peace Commissioner from 1995 to 1998, said, “Both the government and the FARC have realized that continuing the war is meaningless.” The last peace talks, which ended in a guerrilla demobilization, was the April 19 Movement (M-19) in 1990, while the latest process with the FARC was developed for nearly four years until their breakup in February 2002. By Dialogo August 29, 2012last_img read more