FED HITS PAUSE BUTTON ON RATE HIKE
Yesterday, the United States economic sector was holding their breath while waiting to see if the Federal Reserve would raise interest rates. Today, they breathed a sigh of relief as Janet Yellen, at the conclusion of her two day meeting, decided against a rate hike. Despite the suspense, the general consensus before the announcement was made was that a rate hike would not be on the cards. A low jobs report in May, along with diminished job gains, has contributed to Yellen’s decision. The Fed initially estimated an economic growth rate of about 2.2% for the United States in 2016. Following the May labor report, they cut that estimate to just 2%. Overall, it paints a picture of a slowing U.S. economy.