John Fahey: US Fed is guiding higher rates 'for as long as is appropriate'

While the US economy has continued to perform well over recent months, there have been signs of a loss of momentum in activity levels

There have been signs of a loss of momentum in the US economy.

We are in the midst of the April to May round of central bank meetings. Last week saw the US Federal Reserve gathering take centre stage. To no great surprise, the central bank left its key funds rate in a target range of 5.25%-5.50%, a 22-year high.

This marked the sixth straight meeting that US rates have been left on hold. From a markets viewpoint, with no expectation of any rate change, attention was centred on what guidance would be forthcoming on the Fed’s outlook regarding interest rates.