Markets

Fed will keep interest rates unchanged

Because of the new low economic results at the last month, and inflation, this Wednesday, during the meeting, Fed will save the same interest rates. Still, this situation can turn out of the interest rates hike in December.

Representatives of the Federal Reserve during a year said to journalists that they are considering the possibilities of interest rates hike. Some of them, like Janet Yellen, for example, said that an increase of the rates can be a new step for the American economy. However, her colleague Lael Brainard just a week ago, speaking with the journalists assured that the national economy is too weak, to let it develop without a stimulus. She believes it is too early to raise the interest rates.

And, apparently, the numbers is on her side. After the weak economic data from August, the probability of new rates hike went down to 15 percent.

At one night American Central Bank raised the benchmark in December from 0.25 percent to the 0.50 percent. It is the one hike for the whole decade, and still, the rates did not jump the whole year.



Reuters asked the economists about the chances of interest rate hike. And they cannot deny that there is still a very slight possibility that during the meeting of Fed representatives this Wednesday, they can raise the interest rate. However, majority expects to receive new interest rate this December. They believe that it is most real possibility.

This decision is extremely important for the whole world community, as the USA economy makes a huge impact on the global market.

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