Federal Reserve Heeds Warnings, Holds Interest Rates
They’ve got the world on their shoulders. Despite speculation that they might raise interest rates for the first time since 2006, Janet Yellen’s team decided to play it safe. The chair said rates remain unchanged, reflecting concern for jittery world markets that have overshadowed America’s economic uptick. Yellen warned that slowdowns elsewhere could “restrain U.S. economic activity,” and the news saw drops for the U.S. dollar and Treasury yields. Most analysts still expect a rate hike later this year — as today’s more than 200 point Dow drop reflects — but one predicts it’ll now hold until 2017.