FED keeps rates on hold in July meeting

 

The Federal Reserve (FED) keeps rates on hold and says "near term risks to economic output have diminished". This was reeled out in July's policy statement released Wednesday. The Federal Open Market Committee maintained the target range for Federal funds rate at 0.25 to 0.5 percent.

The statement also said the Labor market has "strengthened and economic activity has been expanding at a moderate rate". FED also acknowledged that household spending has grown 'strongly. One problem FED is dealing with are the inflation numbers, which very much below 2 percent target.

Highlights of how the FED July policy statement changed from that of June policy statement has been published by the Wall Street Journal.

Global growth is of great concern to FED and they have been monitoring geopolitical development particularly in Europe. FED is cautious and want to see a remarkable improvement in financial markets conditions