«The statement carried only modest changes in wording, but they were meaningful nonetheless, highlighting that the Fed is optimistic on the outlook and intent on continuing to raise
rates at a gradual pace,» said Westpac analyst Elliot Clarke.
The Federal Reserve expects to keep rates relatively low and will only increase
rates at a gradual pace.
Not exact matches
In his first speech on the economy since taking over
at the Federal Reserve, Chairman Jerome Powell said Friday that growth is running
at a solid
pace and continued
gradual rate hikes will be necessary.
«The Fed is signaling it is keeping to the
gradual path and not hiking
rates at faster
pace (
at least for now),» Alvin Liew, senior economist for UOB in Singapore, said in a note.
Fed officials have variously described the subsequent
pace of
rate hikes as «
gradual,» «shallow,» «slow,» «halting» and even «crawling,» noted economists
at Goldman Sachs.
«They think things are balanced right now and for the foreseeable future» in the context that they will continue to move interest
rates higher
at a
gradual pace, he added.
While some market observers believe that even a modest
rate rise will disrupt markets, the Fed has made it clear that
rate increases will be measured and
gradual, a
pace likely well - anticipated by markets
at this stage.