Will they call a halt to rate hikes in March?
The US FOMC meet that concluded on January 27th was significant in more ways than one. The FOMC meet clearly acknowledged that the global situation was indicative of an overall slowdown and hence may not be conducive to rate hikes. The FOMC also conceded that the US economy may not be growing as robustly as it seemed to grow in 2015 and that may be another tacit admission by the committee. But most importantly, the minutes also focused on the need to adopt a wait-and-watch approach to rates in the current circumstances. Why is this critical? Continue reading