, Columnist
The Fed Is on the Right Side of Its 'Transitory' Bet
Despite the soft first-quarter economic data, investors should expect another interest-rate increase in June.
It will get better.
Photographer: Tomohiro Ohsumi/BloombergThis article is for subscribers only.
The Federal Reserve receives a lot of criticism for the way it conducts monetary policy, but it shouldn’t be faulted for delivering a hawkish message at last week’s policy meeting in the face of data showing a marked slowdown in first-quarter growth. The May meeting came off largely as expected, with policy makers leaving interest rates unchanged and the post-meeting statement containing a clear message that policy makers remained set on a June rate hike.
From the statement: The Committee views the slowing in growth during the first quarter as likely to be transitory…