Over the past few weeks, there has been an increased focus on whether or not the Federal Reserve will raise interest rates Although financial experts are on the fence on the future of the rates, the Fed’s Janet Yellen has announced there will be no increase for now. However, things may change later this year, assuming the US economy doe snot face a major hit. The long wait is finally over, and as many people expected, there is no interest rate hike by the Federal Reserve . This is not entirely surprising, considering the economy is not looking all that great in the US. At the same time, Janet Yellen was quick to say a future rate hike is still on the agenda for later in 2016. For now, it remains to be seen if this is a true statement or a way to keep a positive attitude during these harsh times. No Federal Reserve Interest Rate Increase As is usually the case with announcements like these, a lot of details remain rather vague. A timeline, for instance, was not provided by Yellen. A new meeting by the Fed’s committee will take place in December. There is another session scheduled for November. However, raising interest rates right before the next US elections would be rather unprecedented. Keeping in mind how Yellen said an interest rate hike was “appropriate over the summer months’, this “no deal” attitude is disappointing. At the same time, it highlights the current financial situation, as making promises is next to impossible. One positive note is how the US job market seems to be growing again, albeit only slightly. Creating new jobs and filling the positions remains two very different things, to say the least. Failing to increase interest rates means a big deal to stock […]
