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A January Pause, But US Fed Affirms Plan For Gradual Rate Increases

International News

Fed Rate www.purnartha.comThe US Federal Reserve entered 2016 with a fairly straightforward plan to gradually increase its benchmark interest rate so long as job growth remained strong. On Wednesday, it indicated that the plan remained intact. In a statement issued after a meeting of its policy-making committee, the Fed said that it was worried about weak global growth and wobbly financial markets, but it made clear that it still expected to raise interest rates “gradually.” The Fed did not raise its benchmark rate at this meeting, pausing as expected after increasing rates in December for the first time since the financial crisis. But the statement suggested officials were weighing a second increase as soon as its next meeting in March. “I still think they are going to raise rates in March,” said Gus Faucher, a senior economist at PNC Bank. “I don’t want to oversell it, but I think that while what goes on overseas has an impact on the US economy, what’s much more important is what goes on domestically.”