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Federal Reserve policy meeting starts - interest rate hike not expected

economy

Federal Reserve policy meeting starts - interest rate hike not expected

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Will they raise the cost of borrowing?

The big question as policymakers at the US central bank, the Federal Reserve, started a two day meeting on Tuesday.

The majority of economists expect the Fed to leave its benchmark main interest rate unchanged.

The last time it was put up was in December 2015 when bank policymakers signaling that four rate hikes were coming in 2016.

That has not happened due to relatively weak US economic growth and inflation, along with financial market volatility and concerns about global growth following events like the Brexit vote.

At the end of the meeting on Wednesday the financial markets will closely examine Chair Janet Yellen’s statements for clues on the timing of the next hike.

An increase in November is thought unlikely as the Fed’s policy meeting then will come just days before the US presidential election.

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