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You can find the current article at its original source at http://www.theguardian.com/business/live/2015/sep/17/us-federal-reserve-interest-rate-decision-markets-janet-yellen-live
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| Federal Reserve puts rate rise on hold - as it happened | Federal Reserve puts rate rise on hold - as it happened |
| (17 days later) | |
| 9.30pm BST | 9.30pm BST |
| 21:30 | 21:30 |
| Federal Reserve keeps interests rates unchanged, says rates could go up later this year | Federal Reserve keeps interests rates unchanged, says rates could go up later this year |
| We are going to wrap up this live blog, but first here is a quick summary of what happened today: | We are going to wrap up this live blog, but first here is a quick summary of what happened today: |
| 9.08pm BST | 9.08pm BST |
| 21:08 | 21:08 |
| The US markets have just closed. Here is where they were at: | The US markets have just closed. Here is where they were at: |
| Stocks retreated from post-Fed highs to end mostly lower: http://t.co/cKpVTvClJ2 pic.twitter.com/it6X2Csgde | Stocks retreated from post-Fed highs to end mostly lower: http://t.co/cKpVTvClJ2 pic.twitter.com/it6X2Csgde |
| MarketWatch also pointed out that “several emerging-markets currencies, including the Mexican peso, Malaysian ringgit and Korean won, traded higher than the dollar after Federal Reserve policy makers left interest rates unchanged Thursday”. | MarketWatch also pointed out that “several emerging-markets currencies, including the Mexican peso, Malaysian ringgit and Korean won, traded higher than the dollar after Federal Reserve policy makers left interest rates unchanged Thursday”. |
| 8.58pm BST | 8.58pm BST |
| 20:58 | 20:58 |
| Vermont Senator and 2016 presidential candidate Bernie Sanders had released a statement praising the Fed’s decision. | Vermont Senator and 2016 presidential candidate Bernie Sanders had released a statement praising the Fed’s decision. |
| In it, he says: | In it, he says: |
| It is good news that the Federal Reserve did not raise interest rates today. At a time when real unemployment is over 10%, we need to do everything possible to create millions of good-paying jobs and raise the wages of the American people. It is now time for the Fed to act with the same sense of urgency to rebuild the disappearing middle class as it did to bail out Wall Street banks seven years ago. | It is good news that the Federal Reserve did not raise interest rates today. At a time when real unemployment is over 10%, we need to do everything possible to create millions of good-paying jobs and raise the wages of the American people. It is now time for the Fed to act with the same sense of urgency to rebuild the disappearing middle class as it did to bail out Wall Street banks seven years ago. |
| AFL-CIO President Richard Trumka echoed similar sentiments in his statement. AFL-CIO is the largest federation of unions in the US. | AFL-CIO President Richard Trumka echoed similar sentiments in his statement. AFL-CIO is the largest federation of unions in the US. |
| We are pleased that the Federal Reserve has kept interest rates unchanged. We know the economic recovery still has not reached working families and even a small increase can have devastating effects on our economic stability. | We are pleased that the Federal Reserve has kept interest rates unchanged. We know the economic recovery still has not reached working families and even a small increase can have devastating effects on our economic stability. |
| The Federal Reserve is wise to not raise interest rates while inflation is running low and wages are flat. Real wages need to rise with productivity. We hope the Fed will now dedicate its time to producing economic policies that work for all and raise wages to a level that can sustain a family. An out of balance economy that exacerbates the incredible income inequality we see in this country must be fixed to strengthen our families and communities. | The Federal Reserve is wise to not raise interest rates while inflation is running low and wages are flat. Real wages need to rise with productivity. We hope the Fed will now dedicate its time to producing economic policies that work for all and raise wages to a level that can sustain a family. An out of balance economy that exacerbates the incredible income inequality we see in this country must be fixed to strengthen our families and communities. |
| Updated | Updated |
| at 9.03pm BST | at 9.03pm BST |
| 8.50pm BST | 8.50pm BST |
| 20:50 | 20:50 |
| My colleague Rupert Neate has written a news story about today’s decision. | My colleague Rupert Neate has written a news story about today’s decision. |
| He points out that not all members of the Fed committee agree about when to raise interest rates. | He points out that not all members of the Fed committee agree about when to raise interest rates. |
| The Fed’s decision was not unanimous – as it normally is – with Jeffrey Lacker, president of the Fed’s Atlanta regional bank, casting a vote for an increase. Lacker had pushed for the Fed to begin raising rates by moving the federal funds rate up by a quarter-point. | The Fed’s decision was not unanimous – as it normally is – with Jeffrey Lacker, president of the Fed’s Atlanta regional bank, casting a vote for an increase. Lacker had pushed for the Fed to begin raising rates by moving the federal funds rate up by a quarter-point. |
| Rates are still expected to be raised this year, with 13 of the 17-member committee predicting that the Federal Open Markets Committee (FOMC) will raise rates by at least 0.25 percentage points. However, four policymakers believe that rates should not be raised until at least 2016, including one who pushed out until 2017. In June only two members felt the rate hike should be left unchanged until 2016. | Rates are still expected to be raised this year, with 13 of the 17-member committee predicting that the Federal Open Markets Committee (FOMC) will raise rates by at least 0.25 percentage points. However, four policymakers believe that rates should not be raised until at least 2016, including one who pushed out until 2017. In June only two members felt the rate hike should be left unchanged until 2016. |
| Related: Federal Reserve declines to raise interest rates from record low | Related: Federal Reserve declines to raise interest rates from record low |
| Updated | Updated |
| at 8.55pm BST | at 8.55pm BST |
| 8.33pm BST | 8.33pm BST |
| 20:33 | 20:33 |
| The conference has now wrapped up. | The conference has now wrapped up. |
| In the last few minutes, Yellen answered the following questions: | In the last few minutes, Yellen answered the following questions: |
| Is Fed contributing to financial inequality in the US? | Is Fed contributing to financial inequality in the US? |
| “The main thing that an accommodative monetary policy does is put people back to work,” says Yellen. “Income inequality is surely exacerbated by high unemployment and a weak job market.” | “The main thing that an accommodative monetary policy does is put people back to work,” says Yellen. “Income inequality is surely exacerbated by high unemployment and a weak job market.” |
| Has the Fed hurt non-wealthy with low rates? Yellen: "I don't see it that way." | Has the Fed hurt non-wealthy with low rates? Yellen: "I don't see it that way." |
| Did the possibility of government shutdown affect the Fed’s decision? | Did the possibility of government shutdown affect the Fed’s decision? |
| No, it played no role in the decisions, says Yellen, pointing out that that’s Congress’s job. | No, it played no role in the decisions, says Yellen, pointing out that that’s Congress’s job. |
| “I believe it’s the responsibility of Congress to pass a budget to fund the government and to deal with the debt ceiling so that America pays its bills,” she says. | “I believe it’s the responsibility of Congress to pass a budget to fund the government and to deal with the debt ceiling so that America pays its bills,” she says. |
| For Congress to endanger the progress that the US economy has made so far “would be more than unfortunate”, says Yellen. | For Congress to endanger the progress that the US economy has made so far “would be more than unfortunate”, says Yellen. |
| Yellen says potential Government shutdown played no role in its decision today. That's Congress's job. Next. | Yellen says potential Government shutdown played no role in its decision today. That's Congress's job. Next. |
| 8.26pm BST | 8.26pm BST |
| 20:26 | 20:26 |
| Could US be stuck in zero-interest rates loop? | Could US be stuck in zero-interest rates loop? |
| Not really, says Yellen. | Not really, says Yellen. |
| “I can’t completely rule it out but really that’s an extreme downside risk that in no way is near the center of my outlook,” she says. | “I can’t completely rule it out but really that’s an extreme downside risk that in no way is near the center of my outlook,” she says. |
| Yellen "would be very surprised” if rates are zero forever. That’s not all that reassuring: The Fed has been very surprised frequently, | Yellen "would be very surprised” if rates are zero forever. That’s not all that reassuring: The Fed has been very surprised frequently, |
| Fed Yellen: “I would be very surprised" if the Fed were forever stuck at zero rates. | Fed Yellen: “I would be very surprised" if the Fed were forever stuck at zero rates. |
| 8.21pm BST | 8.21pm BST |
| 20:21 | 20:21 |
| Yellen says that statements of the Federal Open Market Committee members have been parsed for clues as to what the Fed is planning. | Yellen says that statements of the Federal Open Market Committee members have been parsed for clues as to what the Fed is planning. |
| It is an “unfortunate state of affairs”, she says. | It is an “unfortunate state of affairs”, she says. |
| 8.19pm BST | 8.19pm BST |
| 20:19 | 20:19 |
| Here is a look at what happened to the S&P 500 today when the Fed announced its decision: | Here is a look at what happened to the S&P 500 today when the Fed announced its decision: |
| A rough ride, but stocks like the Fed decision. http://t.co/8Za8i1PtiT pic.twitter.com/3I9WCnyyp3 | A rough ride, but stocks like the Fed decision. http://t.co/8Za8i1PtiT pic.twitter.com/3I9WCnyyp3 |
| 8.16pm BST | 8.16pm BST |
| 20:16 | 20:16 |
| Yellen says that slowing in China’s economy has long been expected and that “there are no surprises there”. | Yellen says that slowing in China’s economy has long been expected and that “there are no surprises there”. |
| “Developments we saw in financial markets in August partly reflected concerns of downside risk to Chinese economic performance and the deftness with which policymakers are addressing those concerns,” says Yellen. | “Developments we saw in financial markets in August partly reflected concerns of downside risk to Chinese economic performance and the deftness with which policymakers are addressing those concerns,” says Yellen. |
| When it comes to markets turbulence, Yellen says they are not responding to it but are analyzing it. | When it comes to markets turbulence, Yellen says they are not responding to it but are analyzing it. |
| “The Fed should not be responding to up and downs in the markets. It certainly is not our policy to do so,” she says, adding that the Fed does ask what is causing these ups and downs. | “The Fed should not be responding to up and downs in the markets. It certainly is not our policy to do so,” she says, adding that the Fed does ask what is causing these ups and downs. |
| Fed Yellen: "The Fed should not be responding to the ups and downs of the markets." | Fed Yellen: "The Fed should not be responding to the ups and downs of the markets." |
| 7.57pm BST | 7.57pm BST |
| 19:57 | 19:57 |
| “We expect inflation to move back to 2%,” says Yellen. Energy prices have created a drag on inflation, but she views it as transitory. | “We expect inflation to move back to 2%,” says Yellen. Energy prices have created a drag on inflation, but she views it as transitory. |
| “In the meantime, the labor market has continued to improve” and is moving closer to full employment which creates upward pressure on inflation, says Yellen. | “In the meantime, the labor market has continued to improve” and is moving closer to full employment which creates upward pressure on inflation, says Yellen. |
| “We’d like to have a little bit more confidence,” she adds, noting that as labor market improves it helps bolster that confidence. | “We’d like to have a little bit more confidence,” she adds, noting that as labor market improves it helps bolster that confidence. |
| 7.50pm BST | 7.50pm BST |
| 19:50 | 19:50 |
| Yellen says that October remains a possibility for interest rate hike, despite that month’s meeting currently being scheduled with no press briefing. | Yellen says that October remains a possibility for interest rate hike, despite that month’s meeting currently being scheduled with no press briefing. |
| Every meeting is a meeting where the committee can make a decision, says Yellen. She adds that if the Fed were to raise interest rates in October, it would than call a press briefing. | Every meeting is a meeting where the committee can make a decision, says Yellen. She adds that if the Fed were to raise interest rates in October, it would than call a press briefing. |
| Oooh. We'll get a bonus briefing if the Fed raises rates without a presser following. | Oooh. We'll get a bonus briefing if the Fed raises rates without a presser following. |
| 7.43pm BST | 7.43pm BST |
| 19:43 | 19:43 |
| “The situation abroad bears watching,” Yellen says before noting that economic recovery at home has advance at a sufficient rate than an argument could be made for raising interest rates. “The economy has been performing well and we expect it to do so.” | “The situation abroad bears watching,” Yellen says before noting that economic recovery at home has advance at a sufficient rate than an argument could be made for raising interest rates. “The economy has been performing well and we expect it to do so.” |
| She says that the decision to raise rates will not be based on any specific data. | She says that the decision to raise rates will not be based on any specific data. |
| Key comments from Janet Yellen: 1. "The situation abroad bears close watching." 2. But "Not fundamentally altered our outlook." #stocks #Fed | Key comments from Janet Yellen: 1. "The situation abroad bears close watching." 2. But "Not fundamentally altered our outlook." #stocks #Fed |