by Justin Spittler
The Federal Reserve is stalling…
Eight years ago, the Fed dropped its key interest rate to near zero. It did this to encourage people to borrow and spend more money. It kept its key rate near zero for seven years.
Then, in December, the Fed lifted its key rate for the first time in almost a decade.
Many people thought the “era of easy money” was coming to an end. The Fed even planned four more rate hikes for 2016.
But the Fed hasn’t lifted rates once this year.
In May, it held off after the U.S. Bureau of Labor Statistics released the worst jobs report in years.
In June, it didn’t raise rates due to concerns about the global economy and “market volatility.”
Yesterday, the Fed had another chance to raise rates. This time, it held off because it said it wants to see more improvement in the job market.