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| Version 1 | Version 2 |
|---|---|
| US Federal Reserve keeps interest rates on hold | US Federal Reserve keeps interest rates on hold |
| (35 minutes later) | |
| The US Federal Reserve has kept interest rates at between 0.25% and 0.5% in the face of an uncertain jobs market. | The US Federal Reserve has kept interest rates at between 0.25% and 0.5% in the face of an uncertain jobs market. |
| The US central bank said it now expected a "slower path" for future rate rises. | The US central bank said it now expected a "slower path" for future rate rises. |
| It raised rates in December for the first time in nearly a decade. | It raised rates in December for the first time in nearly a decade. |
| Chair Janet Yellen said the upcoming UK vote on whether to leave the European Union was one of the factors the Fed considered. | |
| "Clearly this is a very important decision for the United Kingdom and for Europe. | |
| "It is a decision that could have consequences for economic and financial conditions in global financial markets," she said. | |
| Fed policymakers did not reveal when rates might rise, but the door has been left open for an increase when they next meet at the end of July. | Fed policymakers did not reveal when rates might rise, but the door has been left open for an increase when they next meet at the end of July. |
| Chair Yellen added: "Proceeding cautiously and raising our interest-rate target will allow us to verify that economic growth will return to a moderate pace, that the labor market will strengthen further, and that inflation will continue to make progress toward our 2% objective." | |
| The Fed said in a statement that the pace of improvement in the labour market had slowed. The bank added, however, that "economic activity will expand at a moderate pace and labour market indicators will strengthen" even with gradual rate increases. | |
| The dollar fell against the euro and sterling, but Wall Street held on to earlier gains, with the S&P 500 up 0.3%. | The dollar fell against the euro and sterling, but Wall Street held on to earlier gains, with the S&P 500 up 0.3%. |
| The Fed expected the unemployment rate to stand at 4.7% by the end of this year, before falling to 4.6% in 2017 and remain at that level in 2018. | |
| In May, US job creation fell to its lowest level in more than five years, after faltering in April. | |
| Ms Yellen said it was important not to overreact to one or two monthly readings. | |
| "That said, we will be watching the job market carefully," she added. | |
| 'Dovish' | 'Dovish' |
| The Fed now expects the US economy to expand by only 2% a year for the foreseeable future - slightly lower than the forecast in March. | The Fed now expects the US economy to expand by only 2% a year for the foreseeable future - slightly lower than the forecast in March. |
| Brian Jacobsen of Wells Fargo Funds Management said: "It's as dovish as the Fed can get without actually cutting rates." | Brian Jacobsen of Wells Fargo Funds Management said: "It's as dovish as the Fed can get without actually cutting rates." |
| Aaron Kohli of BMO Capital Markets agreed that the statement appeared "somewhat dovish", adding: "The market had expected them to moderate their tone a little bit given what's been going on and given the risk that we have in terms of Brexit." | Aaron Kohli of BMO Capital Markets agreed that the statement appeared "somewhat dovish", adding: "The market had expected them to moderate their tone a little bit given what's been going on and given the risk that we have in terms of Brexit." |