The Federal Reserve has decided not to raise interest rates once again, dimming the chances of a rate hike this year. The decision was made on Wednesday.
The Fed cited softening in net exports and slowdown in job gains among the main reasons for keeping rates flat. In a statement following the meeting, the Fed did not say whether it would raise interest rates in the remaining months of 2015.
“In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress — both realized and expected — toward its objectives of maximum employment and 2% inflation,” the Fed said in a statement.
With one more Fed meeting scheduled this year in December, most Federal Open Market Committee officials still expect it will be appropriate to begin raising rates in 2015, Sarah House, economist at Wells Fargo Securities, said at the last week’s Auto Finance Summit in Las Vegas.
“Historically, Fed tightening tends to not immediately impact auto sales,” she said. “The pace and ultimate magnitude of rate hikes, however, are likely to be less than previous cycles.”
