The Federal Reserve voiced concern Wednesday about how global pressures could affect a slowing U.S. economy, while keeping a key interest rate unchanged.
Six weeks after it raised rates from record lows, the Fed issued a statement after their latest policy meeting that took stock of a more perilous international picture and suggested that they might reduce the pace of future rate hikes if market losses and global weakness persist.
Many point to the Fed’s December rate hike as a key factor in the stock market’s tumble in recent weeks. Since the Dec. 16 increase, stocks have plunged, oil prices have skidded and China’s leaders have struggled to manage a slowdown in the world’s second-biggest economy. The Fed’s statement also noted slowed U.S. economic growth.
Some economists say they now expect just two modest rate increases during 2016, rather than the three or four anticipated when the year began.
Read more: Kansas City Star