Citing "greater uncertainty" in the global economy, the U.S. Federal Reserve shelved once again any plan to boost interest rates, with the "probabilities" for any action little changed through next January.
Moreover, the economic forecast prepared for the mid-September meeting was "a little weaker" than the staff's forecast in July, and economic downturns elsewhere, especially in China, were likely to affect U.S. growth potential. Nonetheless, members of the Fed's Open Market Committee agreed that risks to the U.S. are "nearly balanced," and the economy would "most likely continue to expand at a moderate pace."
Bottom line: The Fed will maintain its target interest range for federal funds at zero to 1/4 percent. How long? Even after conditions improve to their desired level, the Fed "may, for some time," keep interest rates low.
All things considered, don't look for a boost until spring.
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