It was not like the last interest rate meeting in December with great tension in the financial markets awaited the decision. At the time, the key interest rate by a quarter percentage point went up.
Since December 2008, the policy rate stood at 0 to 0.25 percent. Those historically low was the result of a series of rate cuts during the financial crisis that began in the US in 2007.
From the minutes of the December meeting of central bankers later found out that the interest rate step a ” close call ” was. Although the decision to increase interest rates was taken unanimously, some policymakers have turned to worry. Market Experts spoke of a mostly symbolic step.
In September, decided to forgo the Fed from raising interest rates, which came as a surprise to the financial markets, because it was expected that the interest rate that month already jacked up would be .
Gradually
The central bank showed Wednesday managed to still count on the interest ” gradually ” future operations. In addition, close attention be paid to the global economic situation and the state of affairs in the financial markets.
These developments and their implications on the US labor market and inflation, which are important measures of interest rate policy are closely in the scrutinized the Fed did know.
Balanced
It is notable that in relation to the declaration a comment from the Fed statement was taken at the previous interest rate decision. At the time, central bankers called the risks to the US economic outlook ” balanced ”.
Since then, turmoil in financial markets, a further decline in oil prices and increased concerns about the global economy changed that picture.
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