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The Federal Reserve Kept Interest Rates Unchanged

International News

Federal Reserve www.purnartha.comThe Federal Reserve kept interest rates unchanged on Wednesday and said it was “closely monitoring” global economic and financial developments, but maintained an otherwise upbeat view of the US economy. The central bank’s decision was widely expected after a month-long plunge in US and world equities raised concerns that an abrupt global slowdown could act as a drag on US economic growth. “The committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation,” the Fed’s policy-setting committee said in a statement that diminished the chances of a rate hike at its next meeting in March. The Fed removed a previous reference from its statement to the risks of the economic outlook being balanced. Instead, the central bank said it was weighing how the global economy and financial markets could affect the outlook. Fed policymakers did not give updated forecasts on the path of monetary policy on Wednesday but said they expected the labor market would continue to strengthen and the economy would expand even with “gradual adjustments in the stance of monetary policy.”