This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/2015/oct/08/federal-reserve-almost-raised-interest-rates-september
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Federal Reserve officials almost raised interest rates in September | Federal Reserve officials almost raised interest rates in September |
(about 17 hours later) | |
Federal Reserve officials were almost ready to raise interest rates in September but held off because of China’s economic slowdown and its potential to derail US growth and inflation. | Federal Reserve officials were almost ready to raise interest rates in September but held off because of China’s economic slowdown and its potential to derail US growth and inflation. |
Minutes of the 16-17 September discussions showed the central bank believed the time for the first Fed rate increase in nine years “might be near”. | Minutes of the 16-17 September discussions showed the central bank believed the time for the first Fed rate increase in nine years “might be near”. |
But policymakers decided that it would be “prudent to wait” for evidence that the economy had not deteriorated and that inflation would gradually move back toward the Fed’s 2% annual target. Some members also expressed concerns that a premature rate hike could harm the central bank’s credibility. | But policymakers decided that it would be “prudent to wait” for evidence that the economy had not deteriorated and that inflation would gradually move back toward the Fed’s 2% annual target. Some members also expressed concerns that a premature rate hike could harm the central bank’s credibility. |
The September meeting had been preceded by weeks of speculation over whether rates would be increased. The Fed decided against a rate hike, although various officials have indicated it was a close call. | The September meeting had been preceded by weeks of speculation over whether rates would be increased. The Fed decided against a rate hike, although various officials have indicated it was a close call. |
Fed chair Janet Yellen told reporters at a news conference following the meeting that a rate hike was still likely this year, a prediction she repeated two weeks ago during a speech in Massachusetts. | |
But since then, the government has released economic data that could give Fed official further pause. | But since then, the government has released economic data that could give Fed official further pause. |
Employers added just 142,000 jobs in September, and officials lowered their estimate of job gains in July and August by a combined 59,000. That left monthly job growth at a mediocre 167,000 in the July-September period, down from 231,000 in the April-June period. | Employers added just 142,000 jobs in September, and officials lowered their estimate of job gains in July and August by a combined 59,000. That left monthly job growth at a mediocre 167,000 in the July-September period, down from 231,000 in the April-June period. |
Many economists believe the weak job report has eliminated the possibility of a rate hike at the next meeting in October. Some believe the Fed could end up waiting until next year to begin raising rates. | Many economists believe the weak job report has eliminated the possibility of a rate hike at the next meeting in October. Some believe the Fed could end up waiting until next year to begin raising rates. |
The Fed’s two final meetings of this year will occur on 27-28 October and 15-16 December. | The Fed’s two final meetings of this year will occur on 27-28 October and 15-16 December. |
“I believe the jobs report makes an October rate hike out of the question, but if we have some strong employment reports before the December meeting, then a case could still be made from a December rate increase,” said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University. | “I believe the jobs report makes an October rate hike out of the question, but if we have some strong employment reports before the December meeting, then a case could still be made from a December rate increase,” said Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University. |
The Fed has kept its benchmark rate at a record low near zero since December 2008. It has not raised rates since June 2006. | The Fed has kept its benchmark rate at a record low near zero since December 2008. It has not raised rates since June 2006. |
Previous version
1
Next version