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What’s Happening in the World Economy: Fed Is Set to Take a Summer Break

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Hello. Today we look at this week’s meeting of Federal Reserve officials, what other central banks are doing, and examine how automation impacts U.S. wage inequality.

The Fed on Hold

The Federal Reserve is set to keep monetary policy ultra-easy this week, but Chairman Jerome Powell and his colleagues still have much to discuss.

Officials are likely to finish their gathering on Wednesday by signaling they will keep their current stance in place through the summer. Rock-bottom interest rates and bond-buying remain the order of the day.

Providing them some room to do so, as we reported last week, is the fact that markets are increasingly buying Powell’s argument that the current inflation shock will pass.

The status quo may not last for too much longer and Powell will come under pressure from the post-meeting press conference to detail his outlook.

Click here for full article…www.bloomberg.com