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The Fed Holds Off On Interest Rate Hike In July


The Federal Reserve held off on increasing interest rates this month, even though committee members say the US economy is less susceptible to risks and the labor market is tightening.

Following a two-day meeting in Washington, Federal Open Market Committee members said they'll continue to strongly monitor the economy’s progress, specifically where inflation and global developments are concerned, adding that “near-term risks to the economic outlook have diminished.”

Central bankers will also take into account the impact of Brexit on the economy, and the huge swing from May’s extremely low jobs report to June’s high numbers, Bloomberg reports. Although Fed Chair Janet Yellen has insisted these past few months that a gradual increase in rates will come, the Fed continues to hold off and a specific time for the next rate hike was not mentioned at the meeting. [Bloomberg]