Why the Federal Reserve left US interest rates unchanged

Enrique Díaz-Álvarez18/Sep/2015Currency Updates

Solid economic growth, which rebounded strongly from its weather-induced slowdown in the first quarter, and a tightening labour market, underlined by robust job creation and low unemployment, suggested that the time for emergency level monetary policy settings may be over.

The decision

Economists and analysts were very much split down the middle over whether the Fed would hike rates for the first time in nine years at its September meeting on Thursday.

In the end, the Federal Open Market Committee (FOMC) opted to keep rates unchanged at their current 0.25% level, with just one committee member, Jeffrey Lacker, voting to increase rates this month.

Read on for more details on the Fed’s decision.


Written by Enrique Díaz-Álvarez

Chief Risk Officer at Ebury. Committed to mitigating FX risk through tailored strategies, detailed market insight, and FXFC forecasting for Bloomberg.