U.S. interest rates are staying the same-for now. Fed chief, Janet Yellen, said the economy can still grow at the current rate.
CCTV America’s Jessica Stone reports. Follow Jessica Stone on Twitter @JessicaStoneTV
US Federal Reserve leaves interest rate unchangedU.S. interest rates are staying the same for now. FED chair Yellen said the economy can still grow at the current rate.
But there was more dissent in this meeting, with a larger number of Fed governors pushing to raise rates now.
While the board disagreed on when to make the next hike, Yellen said they all agreed to raise rates by the end of 2016. There are two more meetings to go.
Yellen identified at least one such risk- the Fed is concerned about a possible bubble in commercial real-estate.
Slow and slowing growth is a global problem-especially in the world’s third largest economy, Japan. The Bank of Japan adjusted its stimulus program. The BOJ is keeping interest rates the same, while implementing other steps to reach higher growth.
Chair Yellen said many major world economies are also pursuing economic growth through central bank policy. She said the Fed will monitor whether that approach creates more risk for the world’s financial stability.
John Herrmann and Christopher Vecchio on Fed Reserve’s interest decision
To further discuss the Federal Reserve’s interest decision, CCTV America’s Michelle Makori spoke with Christopher Vecchio, currency analyst for DailyFX.com and John Herrmann, director of U.S. Rate Strategies, MUFG Securities.