Potential Economic Slow-down Kept Feds From Raising Rates

asia-932068_640China’s economic slow-down and the potential impact that could have on the United States kept the Feds from raising interest rates in September.

Minutes of the Sept. 16-17 discussions showed the central bank believed the time for the first Fed rate increase in nine years “might be near.”

But policymakers decided that it would be “prudent to wait” for evidence that the economy had not deteriorated and that inflation would gradually move back toward the Fed’s 2 percent annual target. Some members also expressed concerns that a premature rate hike could harm the central bank’s credibility.

The September meeting had been preceded by weeks of speculation over whether rates would be increased. The Fed decided against a rate hike, although various officials have indicated it was a close call.

Find out more at CBS Money Watch.

Photo courtesy of: tookapic