On Wednesday, the Federal Reserve signaled interest rate increases are likely later this year. As expected, the Fed chose to leave interest rates at current levels for now, following a two-day meeting this week. The Federal Open Market Committee of the central bank said economic activity has been expanding at a moderate pace. Federal Reserve officials said resuming its rate hikes too soon, however, could slow growth or rattle investors. They now predict just two rate hikes this year instead of four. The Fed’s decision was approved nine to one, with Esther George, president of the Fed’s Kansas City regional branch against the move.
A Statement by the Fed said that George favored a quarter-point rate hike now.
Source: NAFB News Service