The Federal Reserve FOMC left interest rates unchanged at 0.25-0.50. Today’s policy statement was more optimistic in tone, as “near-term risks to the economic outlook have diminished”. The Fed indicated that they would still like to raise interest rates sometime this year, even if only once. Recent concerns about Brexit, with the UK voting to leave the EU, employment concerns and a weak recovery have put the Fed on hold for now. The stock market has responded favorably to the Fed’s decision to keep rates unchanged as we have seen 6 new all time highs for the stock market this month. As conditions continue to improve, the likelihood of another rate hike becomes more likely.
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