News
Fed Keeps Rates Steady, But Remains Set On Two Rate Hikes
The Fed decided to leave rates unchanged on Wednesday (unsurprisingly) but said it still plans on two rate hikes this year, and it expects the US job market to move past its recent slowdown.
However, the central bank lowered its economic growth forecasts for 2016 and 2017, and said it would be more dovish on rate hikes after 2016 ends.
Fed chair Janet Yellen and her colleagues gave no hint as to when these two rate hikes will come—putting renewed focus on the July Fed meeting, Reuters reports.
"The pace of improvement in the labor market has slowed," the Fed said in a statement. It added, however, that "economic activity will expand at a moderate pace and labor market indicators will strengthen" even with gradual rate increases. [Reuters]
