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CCTV Script 28/07/16

– This is the script of CNBC's news report for China's CCTV on April 28, Thursday.

Welcome to CNBC Business Daily, I'm Qian Chen.

Amid a moribund economy and reduced levels of consumer spending, the Fed on Wednesday again opted not to raise interest rates.

"Economic activity appears to have slowed," the Federal Open Market Committee said in a statement released after its two-day meeting this week.

"Growth in household spending has moderated, although households' real income has risen at a solid rate and consumer sentiment remains high."

The statement highlighted the many conflicting signs in the U.S. economy - consistent job growth and an improving housing market against slowdowns in business investment and exports.

Indeed, the Atlanta Fed has estimated that economic growth slowed to just 0.6 percent in the first quarter of 2016, a condition reflected in the Fed's lukewarm assessment of conditions.

The statement struck a decidedly dovish tone, and only one FOMC member, Esther George of Kansas City, dissented.

George has been a voice for the hawkish element at the Fed that wants to see the U.S. central bank get back on the road to normalization. George advocated for a quarter-point hike, which would take the current range to 0.5 percent to 0.75 percent.

Prominently missing from the statement was a "balance of risks" assessment, a mainstay of Fed communiques in which the Fed described how conditions were shaping up compared to its expectations.

Fed watchers have taken the absence of the language from the past two statements as indications that FOMC officials remain concerned about growth both domestically and internationally.

Inflation has been elusive for the Fed despite its easy policy path. The central bank kept its rate target near zero for eight years, yet failed to generate inflation above its 2 percent target.

The statement reiterated the official stance that inflation will rise toward 2 percent "over the medium term" but is being held back by "the transitory effects of declines in energy and import prices."

CLN RUN DOWN 0600 04_28_2016

[TIM (t) SEYMOUR Triogem Asset Management Managing Partner] "If you look at where Fed funds are, and you look at probability out to your end, you know, we are somewhere, I think looking at possibly one in October, and that's it, despite the fact that most of the people and a lot of comments on the street that we still have 2 rate hikes in their models. I think they are threading the needle for a June hike. I think the market is way too complacent on that, and actually I think you can look at some of the quick interday moves, kinda the "cha cha cha" we talked about. When you actually get rid of the global conditions in the statement, you can see, you can almost get a look at what the market is gonna do."

Financial markets reacted positively to the statement, with stocks notching slight gains from their position before the release.

To be sure, Wall Street wasn't totally taking June off the table for a hike. FOMC official stress data dependence, and if inflation should start to build that would change the equation.

The committee cut its assessment of household spending, indicating it "has moderated" after describing it as "increasing at a moderate rate" following the March meeting.

The March statement also had noted that inflation "has picked up in recent months," but April's assessment was that it "continues to run below the committee's 2 percent long-run objective.

"In addition, the statement added language indicating that the FOMC "continues to closely monitor … global economic and financial developments."

That was a slight tweak from April, in which the committee said the international headwinds "continue to pose risks."

CNBC's Qian Chen, reporting from Singapore.

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