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Fed Leaves Interest Rates Unchanged

New York Times Original article ›

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The caution in raising rates of the U.S. Federal Reserve in 2015 and memories of the emerging market crisis in 1997

09/17/2015

In 1997 Federal Reserve rate increases worsened the situation in the fragile Mexican economy, with Mexico needing a large bank bailout. Contagion to other countries was also a large problem at the time. Harvard economists Kenneth Rogoff and Larry Summers, cite the situation facing emerging markets with the sharp fall in commodity prices and the decline in the value of the currencies, particularly Brazil, Indonesia and Russia, countries dependent on commodity exports, creating risks in the global economy that the Fed could not ignore. The debt crisis in China and slowing economy, with missteps by the government in handling the stock market decline, happened in August-September 2015, creating added uncertainty- making Sept 15, 2015, too soon for the Fed to risk even a modest 0.25% increase in rates.

Grouped Articles

Watching the Fed, and Remembering the Tequila Crisis

New York Times 09/18/2015

Fed Leaves Interest Rates Unchanged

New York Times 09/17/2015

Gloom on Brazil Finances Deepens

Wall Street Journal 12/17/2015

Why China’s Market Fell So Much

Wall Street Journal 01/05/2016

Why China’s Market Illness Has Gotten More Contagious

Wall Street Journal 01/12/2016

A January Pause, but Fed Affirms Plan for Gradual Rate Increases

New York Times 01/27/2016

The U.S. Federal Reserve's policy difficulty in raising interest rates in 2015-2016

09/14/2015

The sharply slowing economy in China in September 2015 acts to put the Fed on another of a series of pause situations as it plans to raise rates. The Fed'd interest rate policy has shifted to raise rates vey gradually making the rate increases small and over an extended period of time, so that this does not affect the recovery. Very low inflation with the steep decline in commodity prices, especially oil, is making it easier for the Fed to make this pause.

Grouped Articles

Lesson for Fed: Higher Interest Rates Haven’t Been Sticking

Wall Street Journal 09/14/2015

Here’s a Way Yellen Can Raise Rates Without Spooking Markets

Wall Street Journal 09/14/2015

The Fed Gets a Last Data Point, and It Isn’t Good

Wall Street Journal 09/17/2015

Central Banks’ Lesson: Easy Money Alone Isn’t a Growth Salve

Wall Street Journal 09/18/2015

Watching the Fed, and Remembering the Tequila Crisis

New York Times 09/18/2015

Fed Leaves Interest Rates Unchanged

New York Times 09/17/2015


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