US Federal Reserve: The prime rate is not affected – for now – Reuters

Federal reserve

the US Fed leaves the interest rate unchanged

(Photo: Reuters)

Washington Despite the withdrawal from the EU vote of the British, the US Federal Reserve keeps the door open for a further tightening of monetary policy open. She decided on Wednesday night to keep the key rate for the supply of banks with cash further in a range between 0.25 and 0.5 percent. At the same time the monetary authorities declared to Fed chief Janet Yellen that the risk to the US economic outlook have reduced in the short term. This is considered a hint that they could attract even 2016, the interest rate reins.

The Fed had signaled in mid-June that it still will venture two steps upwards 2016th However, many experts expect only with an increase in December, when the effects of the Proposed referendum on United Kingdom membership of the European Union-vote can be estimated and has also cleared the smoke of the US presidential election campaign.

The Fed pointed after the interest rate decision on the moderately growing economy and strong job growth in June. Commerzbank economist Bernd Weidensteiner holds the tone of the Fed’s statement for “much more optimistic” than they were in June. This clears the way for a rate hike could be paved in September. But was an increase in December likely.

The central bank had last streamlined end of 2015 monetary policy and kept quiet after that. Meanwhile, the International Monetary Fund (IMF) has withdrawn its forecasts for global economic growth, while reducing the estimates for the UK massively. The country with the globally important financial center of London threatened after the withdrawal from the EU poll of Britons of June 23, many experts consider a recession. The Bank of England (BoE) could reduce this in mind next week the historically low interest rate from the current 0.5 percent, missing the economy a boost.

The US economy which was weak at the beginning, is likely to have caught the other hand in the second quarter. Experts expect for the upcoming data on Friday to gross domestic product (GDP) a year on projected increase of 2.6 percent. Light and shade were last but close to each other: While the industry in June suffered an unexpectedly sharp drop in orders, companies and government hired unexpectedly much new personnel. The Fed is for full employment and stable prices worry: She has almost reached its goal with an unemployment rate of 4.9 percent last. But the central bank of its for the economy viewed as ideal inflation rate of two percent

is still a good distance away. The looming hot phase in the US presidential race between Republican Donald Trump and the Democrat Hillary Clinton is expected to raise interest rates in early November – make it appear unlikely – and therefore just before the polls. Because such a move could be seen as a political issue – especially since Trump has announced its intention to appoint as President long a Republican to the top of the Fed. His controversial plans for radical tax cuts and a move away from free trade also ensure explosive. “There are many uncertainties in the economy. This includes the forthcoming elections”, recently said the head of the Fed offshoot in Philadelphia, Patrick Harker.