The Federal Reserve is keeping U.S. interest rates at record lows in the face of threats from a weak global economy, persistently low inflation and unstable financial markets.
Wrapping up a closely watched meeting, Fed officials say that while the U.S. job market is solid, recent global developments may 鈥渞estrain economic activity鈥� and further drag down already low inflation.
Signs of a sharp slowdown in China have intensified fear among investors about the U.S. and global economy. And low oil prices and a high-priced dollar have kept inflation undesirably muted.
Before year鈥檚 end, many analysts still expect the Fed to raise its key short-term rate, which it鈥檚 kept near zero since 2008. A higher Fed rate would eventually send rates up on many consumer and business loans.
Guest
- , senior business editor for NPR. She tweets .
Copyright 2021 NPR. To see more, visit https://www.npr.org. 9(MDA5NTM4MTIyMDE0MTg3NDc2MTVlZjdmNQ001))