Interest Rates - The Fed Pauses

Interest Rates

 

The Federal Reserve decided today not to raise interest rates for the first time in more than two years, but the central bank left the door open for more hikes in coming months - news that disappointed Wall Street.

 

The central bank said it was pausing, after 17 straight rate hikes that started in June 2004, because the economy was cooling.

 

Investor hopes for a pause had grown in recent weeks as more reports pointed to the slowing economy being a bigger risk than rising inflation.

 

Most notably, the nation's gross domestic product, the broadest measure of economic growth, rose at a weaker-than-expected rate in the second quarter, and job growth missed forecasts in July for the fourth straight month.

 

Concerns about higher oil prices and a slowdown in the housing market also appeared to play a role in the Fed's decision.

 

The complete story here….