As SÃ©bastien Lavoie, Chief Economist at Laurentian Bank Securities, puts it, âthe Fed played it safeâ, when they announced that interest rates will be left unchanged after a two-day policy meeting.
In a statement released after the meeting, the Federal Reserve stated that although there are signs an increase in federal funds is warranted, policy makers are stalling by waiting for âsome further evidence of continued progress toward its objectives.â
The Fed’s statement was nearly the same as last September’s, as shown in The Wall Street Journal’s Fed Statement Tracker.
Analysts are not surprised by the Fed’s decison, and agree that a rate hike in December is imminent. Pantheon Macroeconomics’ Ian Shepherdson says, â