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Fed leaves main rate unchanged, says risks have diminished

While Chair Janet Yellen has repeatedly stated that the Fed is likely to raise interest rates gradually, market volatility and the unexpected dip in job gains have delayed such plans.

By Craig Torres | Updated on July 27, 2016
While Chair Janet Yellen has repeatedly stated that the Fed is likely to raise interest rates gradually, it's not happening today, folks. (Photo of Federal Reserve Chair Janet Yellen: AP)

(Bloomberg) — The Federal Reserve left interest rates unchanged while saying risks to the U.S. economy have subsided and the labor market is getting tighter, suggesting conditions are getting more favorable for an increase in borrowing costs.

“Near-term risks to the economic outlook have diminished,” the Federal Open Market Committee said in its statement Wednesday after a two-day meeting in Washington, before repeating language from June that the panel “continues to closely monitor” inflation and global developments. Job gains were “strong” in June and indicators “point to some increase in labor utilization in recent months,” the Fed said.

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