Wednesday, July 27, 2016

Fed leaves rates unchanged – Västerbotten Courier

Economy. US Federal Reserve (Fed) leaves, as expected key interest rate unchanged in the range of 0.25-0.50 percent.

the dollar strengthened immediately against the euro and the Japanese yen after the announcement.

the Fed believes that the US economy has improved and says a rate hike will occur later in the year. The announcement that the interest rate was left unchanged was expected, since there has been concern that an interest rate increase could disrupt the fragile US growth.

According to the Fed, the country’s economy slowing growth and more jobs were added in June. The bank added that household consumption has increased significantly.

Decision-makers in the Fed says it will continue to review the inflation closely, but are less concerned about a sudden economic shock that could shake up the US economy.

in December, the Fed raised interest rates for the first time in nearly ten years. Although job opportunities increased significantly last month said most of the Fed’s policy makers that one should be cautious in raising interest rates until there is tangible progress in the efforts to reach the inflation target of two percent.

Britain’s choice to leave the EU also had less negative impact on the US economy than was previously feared.

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