Wednesday, June 15, 2016

Federal Reserve votes to keep interest rates at current levels

The central bank decided not to raise interest rates Wednesday at the end of its two-day meeting. The decision was in line with expectations after a brutal May jobs report.

"The pace of improvement in the labor market has slowed," the Fed said in a statement. "Although the unemployment rate has declined, job gains have diminished."

The Fed cut its forecast for U.S. economic growth in 2016 to 2%, down from 2.2% earlier. This is the second time this year that the Fed is reducing its expectations for U.S. economic growth. The Fed also slightly decreased its projection for economic growth in 2017.


No comments: