Fed Keeps Interest Rates Unchanged
Washington – The Fed keeps interest rates unchanged in reference to the weak global economy; kept the Federal Reserve (the US central bank) interest rates unchanged on Thursday, referring to fears of a weak global economy but left the door open to the possibility of policy tightening is limited, later this year.
And in what amounts to a tactical retreat Bank said that a series of global risks and other factors convinced him to postpone what would have been the first increase in US interest rates in nearly a decade.
The Fed said in its statement on the policy after the end of the two-day meeting on “the global economic and financial developments in recent times may restrict economic activities to some extent is likely to increase the downward pressure on inflation in the near term.”
He added that the risks facing the US economy is still almost balanced but “watching developments abroad.”
Nevertheless the Bank continued its tendency toward raising rates at some point in time this year while lowering its forecast in the long run for the economy.
Bank is scheduled to hold meetings on the policy in October and December.
He repeated the bank as saying that when deciding the date of increasing interest, he needs to see “some additional improvement in the labor market” and to be “reasonably confident” that inflation will rise