US Fed in wait-and-see mode

As expected, the Fed's rate-setting committee, the FOMC, has not changed the key interest rates. It was argued that the latest GDP data was distorted by spikes in net exports and that current indicators point to solid economic development. Given the current growth, labor market and inflation, the Fed is in the comfortable position of being able to wait for more clarity and new data before making further central bank decisions. We and the FOMC expect two rate cuts by the end of the year.