Fed Refuses to Raise Rates

Fed Refuses to Raise Rates

AP Photo/Jacquelyn Martin, File

The much-anticipated meeting among the members of the Federal Reserve Board this week ended the weeks-long speculation about whether the board would choose to increase the reserve rate despite global financial insecurity.

After hours of discussion, Fed Chairman Janet Yellen announced the board had decided that leaving interest rates at an historic low was the most prudent course.

Members of the board reaffirmed their positive outlook on the American economy that a modest uptick in growth will continue by 2% or more.

Despite citing the global tension in the markets, Yellen left the door open for the Fed raising rates later in the year should the upheaval settled down after a summer of extreme volatility.