The Fed keeps its interest rate unchanged in June
The Fed released its interest rate decision on Wednesday. The Fed kept its interest rate unchanged at 0.25% - 0.50% as widely expected by analysts. The Fed reviewed its interest rate forecasts. The Fed said at its June monetary policy meeting that interest rate will be 0.90% by the end of the year, down from 1.00% in March, 1.6% in 2017, down from 1.9% in March.
Only two members of the Federal Open Market Committee (FOMC) expect two or more interest rate hikes this year, down from 7 in March. 6 members expect only one interest rate hike in 2016, up from 1 in March.
The Fed said in its statement that the job creation slowed, while the economy was picking up.
The Fed cut its growth and inflation forecasts. The U.S. economy is expected to expand 2.0% this year, down from the previous estimate of 2.2%, and 2.0% in 2017, down from the previous estimate of 2.1%.