Q1's GDP Will Likely Delay Interest Rate Increase Beyond June

Information received since the Federal Open Market Committee met in March indicates that labor market conditions have improved further even as growth in economic activity appears to have slowed. Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high.

Higher interest rates are usually a positive for banks, because they can then raise interest rates on loans faster than they increase interest paid on deposits. Higher rates would create the possibility for greater profitability, especially at a time when banks are facing pressure from loans tied to the oil and gas industries.

Uncertainty about the Fed's thinking about interest rates, the election, and the Great Recession resonates with many. These factors are resulting in some reluctance to invest in new equipment.

Information received since the Federal Open Market Committee met in March indicates that labor market conditions have improved further even as growth in economic activity appears to have slowed. Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high.

Higher interest rates are usually a positive for banks, because they can then raise interest rates on loans faster than they increase interest paid on deposits. Higher rates would create the possibility for greater profitability, especially at a time when banks are facing pressure from loans tied to the oil and gas industries.

Uncertainty about the Fed's thinking about interest rates, the election, and the Great Recession resonates with many. These factors are resulting in some reluctance to invest in new equipment.