The Fed, in its press release, has let open all the options for hiking rates before the end of the year but September is still high on the agenda. The US central bank has reminded us that its decision will be data dependent and that the improvement on the labor market is the kind of data that could accelerate the decision. But on the other side, lower energy price will not hasten the convergence of inflation to the 2% target.
In other words the Fed has noticed that even growth prospects remain moderate there are stronger dynamics than in June on households and on the labor market. Imbalances are still there on the labor market but more limited than in June. Exports and investment are still a drag to a stronger expansion.
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