Focus on the Fed Decision of Next Week

Global markets are waiting for the Federal Reserve meeting of next week. Rates should remain on hold for the coming months and eventually rise along with the economic growth. In the mean time, the U.S. dollar’s rebound might continue over the short term.
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Awaiting for the Fed’s meetingThe state of the U.S. economy is slowing improving, as the all the twelve Federal Reserve District Banks indicated in the periodic “Beige Book” report that growth remains subdued, albeit the decline appears to be moderating. Consumers are still cautious about what item to buy, but home sales are increasing and prices should again rise in the coming months. In effect, in May, retail sales climbed by 0.5%, after having declined 0.2% in April. Sales of autos and parts showed a 0.5% increase for the first time since January. However, on a yearly basis, retail sales are still down 11.1% from 9.2% in April. The job market is weak, although the pace of decline is slowing. Initial jobless touched the lowest level since January. They fell to 601,000 for the week ending June 6th from 625,000 registered the previous week.