Qualified advisers answering your
Financial Questions
call 0800 092 1245

US Federal Reserve unlikely to raise interest rates

The US Federal Reserve has confirmed there are no plans to increase US interest rates in the short to medium term even though there are signs of recovery in the US economy. It would appear that the $1 trillion injection into the economy is starting to have an impact although with inflation under control and the unemployment market yet to respond positively to renewed economic activity, the Fed has taken a cautious approach on US interest rates.

As a consequence we saw the largest fall in the US currency exchange rate for two months as investors, many of whom had banked on the Federal Reserve increasing US base rates, decided to bail out. It is interesting that the authorities have taken this particular decision because ultimately there are fears that inflation will suddenly spring back to life and could, if left unattended, wreck any potential economic recovery in the US and around the world.

This is the difficult balancing act which many governments around the world have, the fact that inflation will burst to life as and when economies recover, but the need to ensure inflation does not eat away at the value of money and ultimately push prices too high too quickly.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:

Latest News


Helpful new tax year facts that could affect you and your money

Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.

Read more

Useful Links

Popular Searches

Please Enter More Details

Enter More Details