The Federal Reserve has decided to leave rates unchanged after their two-day meeting. That’s no surprise. What investors were focusing on was the word ‘patience’ and the Fed did remove the word from its statement. Beth Ann Bovino is the U.S. Chief Economist at Standard & Poor’s and says despite dropping ‘patience’ the central bank was able to calm the markets with dovish comments. Bovino says a rate hike is likely in June and expects the ‘federal funds rate to reach 1.25% by the end of the year.’ Bovino thinks keeping the word ‘patience’ would have caused the markets alarm rather than a celebration.
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