Why Markets are More Concerned With Europe Than America
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. The sixth straight hold extends U.S. central bankers’ run of getting cold feet amid risks from abroad and inconsistent signs of economic strength. Now the focus will shift to December as the Fed’s likely last chance to raise interest rates in 2016 -- a move that depends on how the economy, inflation and markets fare in the months surrounding a contentious presidential election. The latest decision could embolden Republican presidential nominee Donald Trump to unleash additional attacks on Yellen. The billionaire businessman said last week that the Fed “is being totally controlled politically” and might stand pat on rates for the rest of year. UBS Wealth Management CIO Simon Smiles discusses with Bloomberg's Mark Barton on "The Pulse."