Arab Today, arab today federal reserve holds key us rate unchanged
Last Updated : GMT 08:36:01
Arab Today, arab today
Arab Today, arab today

Federal Reserve holds key US rate unchanged

Arab Today, arab today

Arab Today, arab today Federal Reserve holds key US rate unchanged

The Federal Open Market Committee
Washington - AFP

The Federal Reserve kept its benchmark federal funds interest rate unchanged at near-zero percent as expected Wednesday, providing no fresh hints on when a long-awaited rate rise might come.

The Federal Open Market Committee said the US economy had expanded "moderately" in recent months and the jobs market had strengthened, but noted continued "soft" business investment and exports.

It also said that inflation remained softer than monetary policy makers want to see, though noting that much of the weakness is related to the plunge in energy prices over the past year and to cheaper imports, thanks to the strong dollar.

But the FOMC's brief policy statement, at the end of a two-day meeting, gave no fresh sign of their thinking on when they will embark on an expected series of rate increases.

Minor changes in the language of the statement showed only that "the past six weeks data pushed the FOMC a little closer to raising rates," said economist Chris Low of FTN Financial.

"But they are still waiting for more good news before they actually pull the trigger," he said.

The fed funds rate has been held at 0-0.25 percent since late 2008 to help bring the US economy back from deep recession, and Fed Chair Janet Yellen has said twice this month that she expects a rate hike will come by the end of the year.

An increase was not expected at this week's meeting, as recent data, while good, has not been strong enough to completely convince FOMC members that the economy is ready for it.

But some thought the panel might tip their hand by changing some of the language in the statement.

Instead, the Fed has made clear it wants to see what the two monthly employment reports and other various data updates show before its next meeting, on September 16-17.

- Waiting for more data -

Despite some calls to hold off until 2016, FOMC members appear anxious to break the ice with the first increase, even as they assure markets that increases after that are likely to come in slow steps.

Key data has recently been closer to what the Fed said it wants to see to "normalize" monetary policy after years of easy money.

The unemployment rate fell to 5.3 percent in June, from 10 percent at the 2009 peak.

Inflation, as measured by core consumer prices, picked up to 1.8 percent in June year-over-year, nearing the FOMC target of around two percent.

While expressing confidence in a pickup in economic activity in the second half of the year, Yellen has also singled out some weaknesses that leave her less than convinced about the coming months.

In July comments she pointed out that the labor force participation rate is still extremely low at 62.6 percent; that part-time employment remains high; and that wage growth remains slow despite strong job creation, suggesting that there remains significant slack in the jobs market.

The FOMC statement reiterated that raising rates will be appropriate "when it has seen some further improvement in the labor market and is reasonably confident that inflation will move back to its two percent objective over the medium term."

"The Fed, as usual, is keeping its options open," said Pantheon Macroeconomics economist Ian Shepherdson.

"Not much more improvement is needed, keeping the door to a September hike open," he said, but it will mostly be contingent on the next two employment reports.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today federal reserve holds key us rate unchanged Arab Today, arab today federal reserve holds key us rate unchanged

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today federal reserve holds key us rate unchanged Arab Today, arab today federal reserve holds key us rate unchanged

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Barcelona through George Orwell’s eyes

GMT 13:44 2017 Friday ,20 October

Barcelona through George Orwell’s eyes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Residents get glimpse of Raqa in ruins

GMT 07:10 2017 Saturday ,21 October

Residents get glimpse of Raqa in ruins
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Sweden to get biggest car factory

GMT 14:10 2017 Friday ,20 October

Sweden to get biggest car factory
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Actress Mona Zaki praises husband’s role

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role
Arab Today, arab today Massacre fears spark race

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 08:57 2017 Wednesday ,18 October

Actress Shery Adel happy for Egypt’s qualification

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:43 2017 Wednesday ,18 October

Fake dentists ply brisk trade

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday