The US Federal Reserve kept its benchmark interest rate unchanged on Wednesday as Chairwoman Janet Yellen said she saw no reason to rush, instead preferring to “watch incoming evidence.” But concern among some Fed officials – including the hawkish bloc of Esther George, Eric Rosengren and Loretta Mester - is growing. They reckon the central bank is taking too long to restore borrowing costs to normal levels. All three members voiced their dissent against the official FOMC statement. That was highly unusual considering Yellen's past deftness at keeping members united. The decision to bide time was passed by a 7 to 3 vote, the narrowest margin since the December 2014 meeting. Most economists now believe a rate hike at Fed’s next gathering on November 1-2 is improbable considering its proximity to Election Day. As a result, risk assets climbed, led by performance in equities.
Federal Reserve Punts on Policy
Analisi Giornaliera - 22/09/2016