Read the latest Federal Open Market Committee statement at h

Read the latest Federal Open Market Committee statement at:

http://www.federalreserve.gov/newsevents/default.htm

Based on the latest FOMC statement, does the Federal Reserve appear to be optimistic or pessimistic about the performance of the U.S. economy? Explain your answer and be specific.

Solution

The US federal reserve sounded dovish amid rising global growth concerns espcially regarding slowing Chinese economy, record low commodity prices and strong dollar.

Moreover, recent stock markets plunge over the globe also led the Fed to stop raising rates in the January meeting. GDP data also come lower that was again put pressure on the Fed\'s claims of strong recovery of US economy in earlier meetings.

Overall , i would say Fed followed cautious view as they didnt say anything straight , neither they said that they will not raise rates in the coming months not they say that they will raise rates because of increasing economy volatility and rising financial sluggishness over the globe.

but i would say the Fed appeared pessimistic as they didnt share anything positive on the economy, there was no outlook as such and there was no increase in interest rate in the month.11