In an interesting turn of events, the Federal Reserve has elected not to increase interest rates during this week; this decision comes as consumer confidence takes a nosedive and as the stock market becomes more sporadic, according to Townhall.
A Closer Look at the Situation
For roughly a year, stocks have risen and fallen. However, due to the current climate, the central bank decided to maintain rates within the range of 2.25% and 2.5%. Additionally, the Federal Reserve will observe future patterns before making any decisions about forthcoming rates; they issued the following public statement as an explanation:
“In light of global economic and financial develoments and mutated inflation pressures, the Committee will be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support those outcomes.”
The decision of the Federal Reserve indicates that financial issues in America are still in existence. The issues that we’re seeing now largely stem from the recent government shutdown which took place. As a result of the aforementioned shutdown, many federal workers suffered financial hardships and are less confident about what the economy has in store for them in the coming weeks and months.
On the bright side, the U.S. economy is expected to experience some benefits, due to federal spending initiatives and President Trump’s tax reform.
What are your thoughts on this latest development? Do you think that consumer confidence will see any upticks in the near future? Let us know your thoughts in the comments section below!