The Bottom Line

The FOMC left the federal funds rate target and the neutral bias unchanged at their June meeting this past week. Their accompanying statement indicated their belief that the economic recovery is in place although the pace is anemic. Some economists believe the Fed could raise the funds rate as soon as September, but many are still in the camp that the Fed won’t raise rates until the end of the year.

Economic data are soft, but still pointing upward. The housing market continues to boom and this will help spur spending on furniture and appliances. Unfortunately, economic activity is taking second place to other world events – such as corporate scandals and mis-stated earnings.