Fed holds off on rate hike as inflation remains below target

Rates to stay between 0.25%-0.5%

Jayna Rana
clock • 2 min read

The Federal Reserve decided to keep interest rates unchanged once again this month, but said "near-term risks to the economic outlook have diminished".

In a statement released after its meeting on 27 July, the Federal Reserve, led by Janet Yellen (pictured), said it has decided to maintain the target range for interest rates at 0.25%-0.5%. It said: "The stance of monetary policy remains accommodative, thereby supporting further improvement in labour market conditions and a return to 2% inflation. "In light of the current shortfall of inflation from 2%, the committee will carefully monitor actual and expected progress toward its inflation goal. It expects economic conditions will evolve in a manner that will warrant only gradual incre...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

More than half of IFAs feel negative about a potential Labour govt

More than half of IFAs feel negative about a potential Labour govt

Advisers favour Conservatives when it comes to their clients and business

Isabel Baxter
clock 09 May 2024 • 2 min read
Elections and advice: Planning in political and legislative uncertainty

Elections and advice: Planning in political and legislative uncertainty

‘It should not be based on speculation, always plan on current legislation’

Isabel Baxter
clock 08 May 2024 • 3 min read
'Discussion-worthy stuff': Chinese assets under pressure

'Discussion-worthy stuff': Chinese assets under pressure

China has an 18% share of global GDP and only a 3% MSCI ACWI weighting

Chris Justham
clock 02 April 2024 • 2 min read