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Business

Fed holds rates steady, future hikes in doubt

Opening sequence

Opening sequence

Business

Fed holds rates steady, future hikes in doubt

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17:43
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COMING UP:Fed holds rates steady, future hikes in doubt

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Transcript

00:00:01
>> Federal Reserve Chair Janet Yellen knocked off course by the sharpest slowdown in hiring in more than five years. Yellen and her fellow policymakers unanimously deciding not to raise interest rates Wednesday following a two day meeting. That means lending rates for mortgages, car loans, and other lending products should remain steady as well.
00:00:21
In a press conference, Yellen said despite early pledges to lift rates from the historic lows set during the financial crisis, now was not the right time to do so.>> Now the labor market appears to have slowed down. And we need to assure ourselves that underlying momentum in the economy has not diminished.
00:00:44
>> Cautiousness ahead of next week's potentially market upsetting vote on whether the United Kingdom should leave the European Union. Just one more reason for the Fed to sit on the fence. Overly nervous Fed also providing a mixed economic outlook. Basically putting any rate hike this year in doubt, says Reuter's Fed correspondent, Jonathan Spicer.
00:01:06
>> Critically, whereas in March, you had only one Fed policymaker expect only one hike this year, now we have six. And if there's six of the 17 Fed policy makers expecting only one move this year, potentially let's say in December as futures markets predict. Those six could potentially include Janet Yellen.
00:01:29
>> The shift in sentiment prompting a late day selloff in the stock market. Stocks have now fallen five days in a row.