Fed Drops Concern About Employment And Near Term Risks In July Statement

The Federal Reserve Open Market Committee just released its statement from their meeting this week. The two big takeaways from this statement are their belief in the strengthening of the labor market after the serious blip in May’s data and the belief that the near-term risks to the economy have diminished, indicative of the lack of serious contagion related to Brexit. Sadly, this probably makes a possible September rate hike more likely but not necessarily probable. There will still be plenty of data to look at between now and the September meeting that could sway the decision in either direction. It was a little disappointing to see that one member, Esther George, actually preferred to raise rates at this meeting. I’m sure that, barring any major economic changes, there will be a few more joining her in September.