Federal Reserve officials held off raising interest rates because of China’s economic slowdown, saying it may affect growth and inflation in the United States.
Based on the minutes of its meeting on September 16 & 17, policymakers believed the timing for the first rate hike in nine years is getting closer. The US central bank is almost ready to raise rates but decided to wait for evidence the economy had not degenerated and inflation would slowly move back toward their 2% annual target.
Fed Chair Janet Yellen, at a news conference, said a rate increase remained a possibility this year, a projection she mentioned in Massachusetts two weeks ago.
Several economists stipulated the disappointing jobs data halted the Fed from a rate liftoff. In September, employers added 142,000 jobs, and officials curbed their predictions of job gains in July and August by a combined 59,000.
The Fed’s last two meetings will take place on October 27 & 28, and December 15 & 16, respectively.
The material has been provided by InstaForex Company – www.instaforex.com