The American Federal Reserve raised its key rate at first not. The Federal Open Market Committee of the Fed Reserve left its January meeting the short-term interest rate unchanged at a range of 0.25 to 0.5 percent. This step, the members of the Committee met unanimously, had been expected by most experts. The stock market in New York responded with slight losses.
The central bank stated that it would be in the future more than small rate hikes. “The Committee believes that the economic trends show in a way that will only justify gradual increases.” The rate of interest will for some time remain below what would apply in the longer term. This could be an indication that the Fed is taking less than the expected four rate hikes this year.
The Fed had raised in December for the first time after seven years, the interest rates slightly by 0.25 points, and thus an end the era of super cheap money introduced. According to critics, the decision came in the face of the global economic situation but too soon.
The International Monetary Fund (IMF) recently had corrected its growth forecast for the world economy by 0.2 percentage points for the years 2016 and 2017 downwards have to. The low price of oil, the conversion process of China, uncertainties by political risks around the world, and not least the extremely strong dollar had acted as a brake, especially in developing countries.
In the United States, although the data had a positive outlook from the labor market, exports and inflation, however, were weak. “Inflation will remain low in the near future”, according to a statement from the Fed, and will recover in the medium term. “The Committee closely monitored world economic and financial developments and assesses their impact on the labor market and inflation.”
For possible future rate hikes, the Fed left the door open. “The Committee is actual and expected economic conditions contrary to the objectives of strengthening the labor market and inflation by two percentage weigh”, the central bank announced further with. For international developments would be held into the equation.
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