Federal Reserve forgoes rate hike


The Federal Reserve held off on a rate hike Wednesday, falling in line with what had widely been predicted ahead of decision day. "A December rate hike is more likely," Jeremy Zirin, the chief equity strategist at UBS Wealth Management Americas, told USA Today. "The Fed doesn't want to be disruptive to the market, and it would clearly be a surprise to the market," had the hike come today.
That was what it sounded like from the Fed's announcement, too:
The language suggests the committee is lining up for a December move: "The case for an increase in the federal-funds rate has strengthened." That's the language [Janet] Yellen used last month in her Jackson Hole speech.But the committee said it decided "for the time being, to wait for further evidence of continued progress toward its objectives." [The Wall Street Journal]
U.S. stocks were trading higher on Wednesday in anticipation of the Fed's policy meeting and after the Bank of Japan announced a "new framework" in a surprise decision as part of an effort to boost the economy.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Jeva Lange was the executive editor at TheWeek.com. She formerly served as The Week's deputy editor and culture critic. She is also a contributor to Screen Slate, and her writing has appeared in The New York Daily News, The Awl, Vice, and Gothamist, among other publications. Jeva lives in New York City. Follow her on Twitter.
-
July 30 editorial cartoons
Cartoons Wednesday’s political cartoons include a beast under the surface, new unemployment officers, and more
-
The Miami Showband massacre, 50 years on
The Explainer Unanswered questions remain over Troubles terror attack that killed three members of one of Ireland's most popular music acts
-
Tea app hack: user data stolen from women's dating safety app
In The Spotlight Data leak has led to fears users could be targeted by men angered by the app's premise
-
Samsung to make Tesla chips in $16.5B deal
Speed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance merger
Speed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
Tesla reports plummeting profits
Speed Read The company may soon face more problems with the expiration of federal electric vehicle tax credits
-
Dollar faces historic slump as stocks hit new high
Speed Read While stocks have recovered post-Trump tariffs, the dollar has weakened more than 10% this year
-
Economists fear US inflation data less reliable
speed read The Labor Department is collecting less data for its consumer price index due to staffing shortages
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement