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Divided Fed Holds Fire, Signals 2016 Rate Increase Still Likely

  • Three on FOMC dissent in favor of rate hike, most since 2014
  • ‘Dots’ show officials scale back 2017 rate-hike expectations
Bloomberg business news

Why Markets are More Concerned With Europe Than America

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A divided Federal Reserve left its policy interest rate unchanged to await more evidence of progress toward its goals, while projecting that an increase is still likely by year-end.

“Near-term risks to the economic outlook appear roughly balanced,” the Federal Open Market Committee said in its statement Wednesday after a two-day meeting in Washington. “The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives.”