Thursday 16 June 2016

Fed kept interest rates unchanged

The US Federal Reserve left interest rates unchanged on Wednesday and signaled that they still plan to raise rates twice in 2016, despite slow economic growth, which indicates a tightening of monetary policy in the coming years.
The decision of the central bank, however, is not very stable, 6 of the 17 members predict at least one more increase this year.
The sharp drop in hiring in the United States forced doubts about the strength of the labor market in the US, before the meeting of the Fed. Fed Chairman Janet Yellen acknowledged the need to see clear signs of economic strength before raising rates.

"We must be sure that there is enough momentum," said Yellen on a press conference.

The Fed also said the economy will grow only 2 percent this year and in 2017, and it is 0.1 percentage points lower than previous forecasts for each year.
Yellen also didn't gave clear signs whether the rates will be raised at the next meeting in late July or the central bank will wait to see stronger data and will decide at its meeting in September.


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