Last week’s meeting of the US Federal Reserve concluded, as expected, with the Central Bank maintaining the key fed funds rate at 0.375% for a fourth consecutive meeting.

The Federal Reserve should raise interest rates “in the coming months” if the economy picks up as expected and jobs continue to be generated, US central bank chief Janet Yellen said yesterday.

US Federal Reserve chair Janet Yellen said it is appropriate for US central bankers to “proceed cautiously” in raising interest rates because the global economy presents heightened risks.

The dollar climbed to a seven-month high against the euro as the rate of US inflation increased in October, fuelling speculation the Federal Reserve will raise interest rates from near zero as soon as next month.

The Bank of England is still expected to raise interest rates in early 2016 but that prediction now rests on a knife’s edge after the US Federal Reserve delayed its first hike, a Reuters poll of economists found.

These are, indeed, strange times on the global interest rate front. 

The dollar fell after the Federal Reserve last night held off on raising interest rates. The US central bank declined to boost its short-term interest-rate target at a policy-setting meeting, opting to delay an increase amid stubbornly low inflation, an uncertain outlook for global growth and recent financial market turmoil.

While investors, traders, and forecasters may be on the fence as to whether the Fed pulls the trigger today on the first US interest rate hike in nearly a decade, Wall Street’s “smart money” is decisive on one thing: Market volatility will linger.

Minutes of a meeting published last night show that US Federal Reserve officials in July said that while conditions for raising interest rates were approaching, they saw more room for labour market healing and need more confidence that inflation is moving towards their goal.

Federal Reserve Bank of New York president William C Dudley says the pace of interest-rate increases is likely to be shallow once the Fed starts to tighten, and recent weakness in the economy was largely the result of temporary conditions.

Federal Reserve policymakers expressed concern last month that increasing interest rates too soon could pour cold water on the US economic recovery, and fretted over the impact of dropping “patient” from the central bank’s rate guidance.

The US Federal Reserve caught the markets off guard last week when the Federal Open Market Committee struck a more hawkish tone on its future monetary policy than had been expected.

The Federal Reserve stayed the course on tapering its stimulus for the US economy yesterday, reducing asset purchases by $10bn (€7.32bn) for the second month in a row.

The Federal Reserve unexpectedly refrained from reducing the $85bn pace of monthly bond buying, saying it needs to see more signs of lasting improvement in the economy.

European stockmarkets hit a three-week low adding to losses on yesterday’s close.

European stock markets reacted badly to the resignation of the Royal Bank of Scotland chief executive, Stephen Hester, and the indication that central banks may end their support of economies.

European markets advanced en-masse yesterday, as all major bourses with the exception of the Spanish index made headway.

The ECB chief’s plan is awaited with interest by the markets, writes Alan Wheatley

Five years after the credit crisis began, Western economies are confronting the prospect of a lost decade of growth, and international diplomats are warning the damage could get even worse if Europe allows its sovereign debt crisis to fester much longer.

BRITISH stocks climbed for the fifth day in six amid speculation the US Federal Reserve may announce more stimulus measures to help drive the world’s largest economy.

UNEXPECTEDLY weak US job numbers for August yesterday reinforced fears of recession, driving investors out of stocks and into the safety of bonds, gold and the Swiss franc. World stocks fell nearly 2 percent after the US Labour Department said employers added no new jobs in August and July’s figure was revised lower.

US TREASURY two-year notes rose yesterday, pushing yields to a record low, after Federal Reserve officials said economic growth is “considerably slower” and the Treasury’s sale of $32 billion in three-year notes drew stronger-than-average demand in the first note sale since Standard & Poor’s cut the US debt rating on August 5.

US stocks ended a lacklustre week with a moderate decline today as higher oil prices weighed on investors’ already rickety sentiment and Treasuries rallied amid concerns about a meltdown in the subprime mortgage market.

THE US Federal Reserve last increased official US interest rates by 0.25% to 5.25% in June 2006.

THE Federal Reserve raised benchmark US interest rates for the 17th time in succession on Thursday, and said inflation risks remain even though slowing economic growth should help ease price pressures.

The FTSE 100 Index touched its highest level for more than five years today amid signs that interest rates in the United States may be near their peak.

Stocks soared today on news that Federal Reserve policymakers believed their run of interest rate hikes is probably nearing an end, propelling the Dow Jones industrials up nearly 200 points.

THE euro’s alarming rise against the dollar continued yesterday with the single currency breaching the psychologically important barrier of $1.30 for the first time.

The US Federal Reserve raised a key short-term interest rate by 0.25% today, the fourth increase this year.

The Federal Reserve boosted a key short-term interest rate by one-quarter percentage point tonight, the third increase this year.

The US Federal Reserve boosted a key short-term interest rate by a quarter-point today as the central bank continued its campaign to keep inflation under control.

The Federal Reserve boosted a key short-term interest rate by 0.25% today, its first increase in four years, in an attempt to keep the US economy and inflation on an even keel.

U.S. job growth continued at a rapid pace in April, as 288,000 new jobs were created and the unemployment rate fell to 5.6%, the Labor Department said today.

THE dollar erased some of its losses against the European single currency yesterday, at $1.22 to the euro, after falling as low as $1.2276 earlier, for a new record.

Sterling rose against major currencies in trade in reaction to a resilient British labour market report and ahead of the US retail sales figures for July, dealers said.

US Federal Reserve chairman Alan Greenspan signalled he is ready to keep US interest rates low for a "considerable" period of time to lift the economy and prevent a dangerous fall in prices.

THE United States Federal Reserve last night cut a key short-term interest rate by a one-quarter percentage point to its lowest level in 45 years.

The United States Federal Reserve tonight cut a key short-term interest rate by a one-quarter percentage point to its lowest level in 45 years.

By Conor Keane MORE than €1 billion was wiped off the value of shares traded on the Irish Stock Exchange for the second day in a row.

The likelihood of the US sliding into a 'double-dip' recession in the US is low, according to the president of the St Louis Federal Reserve bank.

Share prices reversed afternoon losses to close higher on early Wall Street gains as investors sought direction ahead of the monetary policy decision from the Federal Open Market Committee later today, dealers said.

US government bond prices closed sharply higher, sending yields to new lows, after a weaker-than-expected July nonfarm payroll report raised expectations that the Federal Open Market Committee may cut interest rates to ensure economic growth, dealers said.