Fed Votes to Hold the Course on Interest Rates

While saying “the case for an increase in the federal funds rate has strengthened,” the Federal Reserve announced today that it will not make a rate change at this time. The Federal Open Market Committee, which is charged with setting rates, voted 7-to-3 in favor of maintaining the status quo for now.

Among the three members voting in favor of an immediate rate increase was Esther George, president of the Federal Reserve Bank of Kansas City, who has advocated in favor of gradual rate increases in previous meetings of the committee this year. Her belief is that the economy is ready for, and needs, rates to move gradually toward what she has called, “a more normal level”