June 15, 2016
The Federal Reserve held interest rates steady, following two days of meetings this week. Though it indicated more gradual hikes over the coming years, the move to not bump up the rate was set against a backdrop of slower economic growth, a downturn in jobs, and a tepid future.
A July rate increase is possible, but the Fed chair Janet Yellen says policymakers are keenly watching to “assure ourselves that the underlying momentum in the economy has not diminished.” They’re also factoring in a critical British vote next Thursday on whether she leaves or remains as a part of the European Union.
The central bank’s benchmark rate remained unchanged at 0.4%. In December, it raised the fed funds rate for the first time in nearly a decade, where it has remained since, despite the intent to return to a more ‘normalized’ monetary policy.