Wednesday, January 27, 2016

Federal Reserve Leaves Rates Unchanged

Federal Reserve Leaves Rates Unchanged

Photo: Stefan Fussan


After the Federal Reserve raised rates for the first time since 2006 back in December, the market seems to think it was a wrong move. And believe the Fed should leave interest rates unchanged.

Washington post reports, “markets now think that the Fed will undershoot its inflation target as far out as the five years from 2021 to 2026 by even more than they used to.”



The Fed released today at 2:00 pm that it will leave rates unchanged.

And stated, “Given the economic outlook, the Committee decided to maintain the target range for the federal funds rate at 1/4 to 1/2 percent. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation.”



Overall they acknowledge global problems are an issue but believe better times are ahead. Because even though our economic growth slowed during our fourth quarter last year, our labor market went upwards. 

Therefore the U.S. dollar will continue to gain its strength and will still give U.S. travelers the most value for their dollar.  


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Posted By Jacquelyn McMullen at 12:00 PM
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