Key points of FOMC meeting

Janet Yellen, Chairman of the Federal Reserve
Janet Yellen, Chairman of the Federal Reserve

The FOMC voted today to keep interest rates stable at 0.25%.

Some key points from Janet Yellen’s speech:

  • Interest rates kept stable due to global economic growth fears and low inflation.
  • Low inflation resulting from transitory factors, such as low oil prices.
  • FOMC’s decision is unaffected by market volatility, such as the recent market correction.
  • Key focus is on economic indicators, such as the unemployment rate.
  • USA economy is growing steadily, creating an environment for raising rates.
  • When the first rate rise is triggered the FOMC will exercise pragmatism as to the ‘steepness’ of the subsequent rises, with the usual economic indicators being taken into account.
  • Fed remains bias towards a rate hike by 2016 Q1 (13 of 17 policymakers).

@Breadeconomics

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