Here’s the key line from the U.S. Federal Reserve’s latest policy statement on July 27: “Near-term risks to the economic outlook have diminished.”
It has been a while since the Fed has dared to look out the window. First it was China that forced the central bank to scrap plans to raise interest rates. Then came Brexit. But global financial markets have held up since the United Kingdom voted to quit the European Union. Before the new statement, only a betting man or woman would have said higher interest rates were likely in 2016. Now, an interest-rate increase before the end of the year is a distinct possibility.
Continue reading at Canadian Business ...