WASHINGTON — Interest rates won’t go up, at least not yet.
The Federal Reserve decided not to raise its benchmark federal funds rate Thursday. It’s a sign the Fed believes that while the U.S. economy is growing, it still hasn’t recovered enough from the housing crash.
The announcement came at the end of the Federal Open Market Committee’s (FOMC) two-day meeting in Washington.
The committee acknowledged the economy is improving, citing slightly higher expectations for gross domestic product and a lower unemployment rate than three months ago, but the Fed said low levels of inflation are still a problem. The committee is also keeping a close eye on the world economy.
“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the FOMC said in a released statement... Read More