Weekly Market Commentary 04/29/2016

There were no surprises on the policy or economic fronts this week. As advertised, the Federal Reserve stood pat at its policy meeting this week, confirming market expectations that the central bank would not raise rates again amidst a highly uncertain economic backdrop. That said, the policy statement following the meeting had a slightly more hawkish tone than the previous ones in March and January, which keeps the door slightly ajar for a June rate hike. In particular, officials downgraded their concerns about global economic weakness, stating only that they will “closely monitor” global economic and financial developments. In the previous statement, they expressed more anxiety, asserting, “global economic and financial developments continue to pose risks.” The implication is that the Fed perceives the U.S. economy as holding up well against the global headwinds.