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FED SLOWS PLANS FOR INTEREST RATE INCREASES

In Uncategorized on 21/03/2016 at 9:55 am

According to NYT Dearbook only 0.5% on the cars, not 1%. Mortgagors and property developers can relax. Interest rates will remain lowish.

The Federal Reserve voted not to raise its benchmark interest rate because weakness in the global economy could affect domestic growth, Binyamin Appelbaum reports in DealBook.

It had been expected to increase this month, but instead pulled away from its December prediction that the rate would go up by one percentage point this year. Fed officials now expect to raise rates by just half a percentage point this year.

Janet L. Yellen, the Fed’s chairwoman, maintained that the central bank remained relatively optimistic about the economy, in which there were no signs of damage from the wobbles of financial markets in the rest of that world.

Ms. Yellen did note that continued weakness in global growth and aggressivestimulus campaigns from other central banks could weigh on domestic growth, for example by strengthening the dollar. She added that financial markets are doing some of the Fed’s work, with tighter financial conditions like increased borrowing costs for corporations.

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