Palos Management of Montreal, Superb Commentary
What is New on the Macro Level? By Hubert Marleau The Fed Will Delay the Expected Interest Rate Liftoff to September 2015 The Federal Open Market Committee (FOMC)had a very lengthy debate on January 27-28 about its strategy and timing for raising its policy rate from the current 0.25% level. Put simply, the rate setters got cold feet and the sense of urgency wasn’t apparent. There are several factors that support this renewed cautious stance. Firstly, the sudden plunge in oil prices is keeping the inflation rate far away from the Fed’s target rate of 2.0%.