Moody's economist Ben Garber talks about the Fed's decision to leave rates unchanged, and their take on the U.S. economy. Bobbi Rebell reports.
The Fed's latest announcement is out and endorse seems to you why open for a possible rate hike in September are. Joining me now with more is Moody's capital markets economist Ben Herbert great to have you as always thanks and all right so what if the Fed have to say about an interest rate hike. Well what they saw was continuing progress in the economy in June the noted that thinks it's slowed down in the first quarter but never seen. More progress toward reaching full employment. They think that inflation will eventually in effect that tore 2% targets that leaves the door open to us separate Iraq. And you mentioned the job market what do they have to say about that they seem to be a little bit more enthusiastic that in the past. Young first quarter we saw it job growth dipped below 2000 a month now we're looking to move back toward consistent job growth of over 200000 among. The unemployment rate continues to sit new cycle lows so the feeling more confident about the progress in the job market. And that inflation that's Arabic that they're always watching for. Yeah well they saying that you know they think inflation outside of this recent drop in energy prices. Continues to solidify. Us of their concerns about inflation are diminishing. The overall kind what sir Alan do you sense that were continuing confidence. Yes because they see continued moderate growth in the economy. They think its own stable path after contracting in the first quarter so it is generally upbeat view of the economy. Now let's say we do get a rate hike in September what's your sense of the way that it would progressed do you think that we would then start seeing a pattern of hikes at the same measured level if you think they'll be how well they've purchased. Not technically. Yeah I don't think they'll. Hike rates consistently what we saw a decade ago. That might be it paces every other beating but they'll go slowly depending on how the data and the economy develops. And finally we have to talk about GDP because we're gonna get our first look at second or GDP of course Taylor's quarter. Was pretty that just Italy's. This is beyond optimism about this that the past for the second quarter. Well of course I think we're gonna get a reversal of the contraction in the first quarter a solid growth may be short of 3%. The definitely a level that puts the economy back on the right track. Rightly that that thank you so much sir thanks for. I thanks to Moody's then Garber and Bobbi Rebell this is writers.