01:26 GMT +315 December 2019
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    The United States Federal Reserve Board building is shown behind security barriers in Washington

    October 'Remains Possibility' for Interest Rate Hike in US

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    A US interest rate increase could take place in October as most Federal Open Market Committee (FOMC) participants expect the conditions for a hike to develop before year end, Federal Reserve Chair Janet Yellen said in a news conference on Thursday.

    WASHINGTON, (Sputnik) — Yellen noted that four FOMC participants moved their projections for the rate hike into 2016 or later.

    "Most participants continue to think that economic conditions will call for an increase in the federal funds rate by the end of this year," Yellen said. "October remains a possibility."

    Earlier on Thursday, the FOMC announced it would keep the interest rate unchanged at the 0 to 0.25 percent range.

    A view of the Federal Reserve September 17, 2015 in Washington, DC. The Federal Reserve held its key interest rate locked at zero Thursday, pointing to the downturn in the global economy even as US growth remains steady.
    © AFP 2019 / BRENDAN SMIALOWSKI
    The Federal Reserve chair explained that a FOMC’s decision to increase the rate will depend on a wide range of economic and financial indicators, including progress toward the 2 percent inflation target and improved labor market.

    Yellen noted that the FOMC participants project inflation to be "very low" this year largely because of lower energy and non-energy import prices. She added the US Gross Domestic Product will grow at a moderate pace.

    At the same time, she stated, the Federal Reserve does not want to wait until the US economy fully meets its main inflation and labor market objectives to begin the process of tightening policy.

    "Our decision will not hinge on any particular data release or on day-to-day movements in financial markets," she pointed out.

    The Federal Reserve is the central bank of the United States that is responsible for managing national monetary policy, setting interest rates and regulating banks.

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    interest rate, economy, US Federal Open Market Committee (FOMC), United States
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