Fed Unlikely to Raise Rates

The US Federal Reserve Bank is scheduled to conclude its monthly meeting tomorrow at which point it will announce that interest rates will be maintained at current levels.  A few weeks ago, economists had actually been wavering in their expectations between a rate hike and rate cut which would be justified respectively by rising inflation and a sagging economy.  However, as the last couple weeks have witnessed a spate of releases of positive economic data, the consensus expectation is now that the Fed will leave rates unchanged.  The announcement is unlikely to affect the Dollar, whish is being driven by a rise in long-term interest rates that are determined by the markets, rather than the Fed.

Read More: The Short View: Fed Funds rate