- Interest rate decision by the Federal Reserve ·
- IW News ·
- 22 September 2016
Normalization of monetary policy increasingly unlikely
The US Federal Reserve Bank (Fed), postponed an increase in its key policy rate again. Last year, the Fed had officially ended its low interest rate policy. But despite improved labor market data it has delayed further rate hikes. The central bank is far away from a "normal" policy rate, which would be 4 percent in the United States, - therefore the Fed might have to rely on negative policy rates like in Europe in the forthcoming economic downturn.