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Fed Rate-Increase Bets Shift to 2016, Money Markets Signal
The Federal Reserve may wait until 2016 to raise interest rates, and will stick to a gradual pace of increases. At least that’s the message from the money markets after policy makers kept interest rates unchanged Thursday. The Fed held its benchmark federal funds rate at zero to 0.25 percent Thursday, showing policy makers aren’t convinced inflation will move gradually back to their 2 percent target. “Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the Federal Open Market Committee said in ... (full story)
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