Fed 'monitoring' global economy

Federal ReserveConception copyright Getty Images

The Federal Reserve said it was “closely crt” global economic conditions, but would not raise interest rates in a finding widely expected by most analysts.

The central bank said US solvent growth had slowed as exports fell because of the strengthening dollar.

Move rates remain between 0.25% and 0.5% after being cheer up for the first time in nearly a decade in December.

The Fed issued a statement on Wednesday after a two-day encounter.

“The committee is closely monitoring global economic and financial developments and is assessing their suggestions for the labour market and inflation,” it said.

The bank did not signal when it whim next raise rates, but did say it expected the US labour market to remain well-established and inflation to rise.

The US economy slowed late last year.

Unusually quiet winter weather hit retail stores, causing holiday shopping tradings to be worse than expected.

Oil prices have continued to fall this month, charging 11-years lows under $30 a barrel amid concerns roughly slowing growth in China, which has battered global stock deal ins.

Mohamed El-Erian, chief economic adviser for Allianz, said: “The Fed annunciation signals that, in the frustrating absence of a US economic liftoff, it remains powerless to external economic developments and volatile financial markets.”

US stock peddles fell following the Fed’s statement, with the S&P 500 falling 1.3% and the Dow Jones down 1.5%.

Oil evaluates did make some gains on Wednesday, however, with Brent rough reversing earlier falls to $32.40 a barrel, while US oil was up to $31.69.

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