Economic Buzz: Fed Keeps Monetary Policy Unchanged; Signals Intention For Further Hike

The Federal Reserve kept monetary policy unchanged but signaled its intention to raise rates later this year thanks to underlying strength in the U.S. economy. A June rate hike remains on the table, as the Fed has projected at least two more rate hikes in 2018 following the most recent tightening in March. Also in March, the Fed raised its growth forecasts for 2018 and 2019 and projections pointed to an extra rate increase in 2019. Moreover, it was revealed that wages and prices are now growing at 2 percent a year, according to the Feds preferred inflation measure. Core inflation, excluding volatile food and energy costs, jumped to 1.9% on an annual basis in March compared to 1.6% in February.