By Matthew Kerkhoff
Central banks are in the spotlight this week, with the Federal Reserve’s statement yesterday, and the Bank of Japan’s policy decision today. Arguably two of the world’s most important central banks, let’s dig a little deeper into their actions (or rather, lack thereof) and the reasons behind them. Today’ we’ll focus on the Federal Reserve, and we’ll save the Bank of Japan for some other time.
Yesterday the Federal Reserve left interest rates unchanged, citing subpar performance in consumer spending, business investment and exports. They noted that growth in economic activity had slowed, and refrained from providing any details about the next possible rate hike.