US Federal Reserve keeps interest rates unchanged – Daily News – Lisbon

In the January meeting the Fed opted not to raise interest rates due to the turmoil in global markets

the Federal Reserve (Fed), the US central bank today left unchanged the interest rates, as expected by the markets, whereas the international economy continues to present risks. The rates will remain between 0.25% and 0.50%, the level in which they are since last December.

In the January meeting the Fed opted not to raise interest rates and to justify prudence, the uS central bank points to new turbulence in global markets, fueled by a slowdown in China and the price drop of raw materials, including oil.

“the global economic and financial situation continues to pose risks, “the statement issued at the end of two-day meeting of the central bank.

” While financial conditions have improved recently, international economic growth seems milder than expected, “he said at a press conference the chairman of the Fed, Janet Yellen.

in a statement, the Fed said that inflation accelerated in recent months, although still below the 2% target. The labor market also strengthened with “solid gains”, with the unemployment rate at 4.9%, the lowest level in eight years.

“Inflation without energy prices and food accelerated, but we have to see if the trend continues, “Yellen said.

the US economic activity continued to grow” at a moderate pace despite economic developments and international finance in recent months, “according to the Fed.

Announcing new economic forecast, the Fed has lowered growth this year. The Gross Domestic Product (GDP) should grow 2.2%, when three months ago pointed to a growth of 2.4%.

In a statement, the monetary policy committee reaffirmed expect that economic conditions allow “gradual increases in interest rates.”

the majority of committee members believe that rates will be at an average level of 0.9% at the end of this year instead of the 1.4% it predicted in December, which should correspond to two increases of 0.25 basis points against the four previous estimates.

“in other words, the majority of participants (at the meeting) believes that to achieve the objectives economic (…) we must undoubtedly a slower pace of rising interest rates, “explained the president of the monetary institution.

the representative of the Kansas City Fed, Esther George, known for its positions contrary to the accommodative monetary policy, voted against the decision to leave the interest rates unchanged, preferring an increase.