Flexible Fed

fed sealOf late, oil and equities have rallied, job growth has firmed, the dollar has weakened, credit conditions have improved, but growth has slowed. Financial markets peg the probability of a June Fed rate hike at just 19.6%. To give themselves a realistic option of raising rates in June the Fed had to boost that probability. And that’s what they did today by subtly changing the wording of the post-meeting communique.

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