WASHINGTON (AP) – Interest rates won’t be going up just yet.READ MORE: Garland ISD Offers Mexican American, African American Studies Courses
The Federal Reserve has decided to keep the rates at record lows — amid threats from a weak global economy, low inflation and unstable financial markets.
Fed officials say while the U.S. job market is solid, recent developments elsewhere may “restrain economic activity” and further drag down inflation.
Signs of a sharp slowdown in China have intensified fear among investors about the U.S. and global economy.READ MORE: 2 Men Arrested In Wylie On Human Trafficking Charges
Federal Reserve Chair Janet Yellen says that the ultra-low interest rates have not widened the wealth gap.
Some economists say that the Fed has bolstered stock market returns, helping chief executives, hedge fund managers and trust-funders. But Yellen countered during her news conference that the low rates have provided a kick-start for hiring, noting that it’s hard to reduce income inequality if people are unemployed.
“The main thing an accommodative monetary policy does is put people back to work,” she said.MORE NEWS: Warrant Issued For Dallas Police Officer Jacob Hughes, Accused Of Fabricating Evidence
(© Copyright 2015 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)