Sunday, September 25, 2016

US Fed keeps its federal funds rate unchanged

 United States Federal Reserve kept its federal funds rate unchanged amid recent weak economic data and tepid inflation. 

The Fed said in a statement released yesterday after the two day policy meeting. The Fed raised its target range for the federal funds rate by 25 basis points to 0.25-0.5 percent in December last year, the first rate hike in nearly a decade. 

However, a slowdown in global economy since the start of this year and other global financial risks have made Fed policymakers cautious to hold off on any further rate hikes.

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