FED LEAVES RATES UNCHANGED
RETAIL SALES ARE SLOWINGWhat can I say that I didn't already say yesterday? The Federal Reserve Open Market Committee met today to size up the situation on inflation and economic growth and decided that, for the moment, both of these phenomena were right where they wanted them.
There was plenty of evidence that economic activity was picking up, though at a modest pace. There was an equal amount of evidence that a moderate rate of inflation was being maintained.
So, today's FOMC meeting adjourned with no announcement. That is to say, the Fed decided to leave the discount rate and the target fed funds rate unchanged, and felt that no explanation for that decision was necessary.
The next meeting of the FOMC is scheduled for July 2.
In other news, Mitsubishi Bank/Schroder-Wertheim announced today that retail sales at the stores covered by their weekly survey declined by 4 percent during the week ending last Saturday. This follows a 1.9 percent advance the preceding week, a 2.1 percent decline the week before that, and a 1.8 percent advance the week before that. All in all, it looks like consumer purchases slowed somewhat during the past month.
Byline: Lafferty (MF Merlin)