Fed Meets, May Hike Interest Rates Soon

The Federal Reserve is scheduled to meet later today to review quarterly economic growth numbers. The main consideration is whether or not interest rates should be raised. They currently stay at the record low, near-zero rate they were changed to during the ‘Great Recession’ in 2008.

Unusually low winter temperatures coupled with a drastic decrease in global oil prices combined to keep economic growth to a mere 1% for the first quarter. This number increased jobs by only 126,000 positions in March, USA Today reports.

Previous concerns for the rampant inflation, as a result of the Treasury’s increase money supply, have not materialized. A more serious concern for the Fed is the lack of growth and its direct influence on deflation.

Analysts have speculated on the Fed’s inclination to consider the slight hikes in interest rates this summer, after the second quarter economic numbers are reported. This appears to be possible, but is far from likely.