Wonkbook: Fed holds off on raising rates

By Jim Tankersley The Federal Reserve tiptoed ever closer on Wednesday to a decision to raise interest rates but ultimately decided to stand fast, despite expressing growing faith in the health of the U.S. economy and in the case for a rate hike. The decision, immediately dubbed a "hawkish hold" by Fed watchers, leaves the Fed …   The latest economic and domestic policy from Wonkblog   Janet Yellen speaks during a news conference following a Federal Open Market Committee meeting in Washington, D.C. on Wednesday. Photographer: Pete Marovich/Bloomberg By Jim Tankersley The Federal Reserve tiptoed ever closer on Wednesday to a decision to raise interest rates but ultimately decided to stand fast, despite expressing growing faith in the health of the U.S. economy and in the case for a rate hike. The decision, immediately dubbed a "hawkish hold" by Fed watchers, leaves the Fed preparing to make a single move to raise rates before the end of the year. Fed Chair Janet L. Yellen explained it simply: The nation's central bank, she said, thinks the labor market still has the potential to pull more would-be workers back into the job market, and inflation continues to run below the Fed's target rate. "We're generally pleased with how the U.S. economy is doing," Yellen said in a news conference after the conclusion of the Federal Open Market Committee's two-day meeting in Washington. "The economy has a little more room to run than might have been previously thought." The normally even-keeled Yellen grew animated during the news conference as she responded to repeated questions about Republican presidential nominee Donald Trump's recent allegations that the nation's independent bank has been keeping rates "artificially low" to aid the Obama administration and Democratic nominee Hillary Clinton. ADVERTISEMENT   Read the rest on Wonkblog.   Chart of the day Coastal urban areas have the most to lose in a major dispute over international trade, which is a possibility if Donald Trump wins the election. Max Ehrenfreund has more. Top policy tweets "Inflation still running well below the Fed's target." -- @JustinWolfers "Elizabeth Warren said watch how Hillary staffs up because staff=policy. @CitizenCohn looked real deep at her staff https://t.co/kQb3utgKYh" -- @mmcauliff ".@HillaryClinton also now proposes ↑ estate tax rates for the wealthiest to help pay for child tax credit expansion: https://t.co/6kbo66MF06" -- @LorenAdler Most Recent Posts from Wonkblog Why atheists and agnostics don't believe in voting The unaffiliated have been punching below their weight at the ballot box in recent elections. By Christopher Ingraham  •  Read more »   Libertarian presidential candidate Gary Johnson is friendly and seems moderate. But then there’s this. It doesn't matter how likable you are. Risky ideas are still risky. By Matt O'Brien  •  Read more »   CONTENT FROM BP Oil's new safety tools Robots and drones could keep an eye out for oil workers. WTO rules Europe illegally subsidized airlines, handing victory to Obama administration ahead of trade fight The World Trade Organization ruled on Thursday that the European Union and several of its members failed to end illegal subsidies for airline giant Airbus, a victory for the United States in what has become the most expensive dispute in international trade history. By Jim Tankersley  •  Read more »   We expect millennials to do great things. Maybe we shouldn’t. Millennials' career choices are really worrisome for America's future. By Ana Swanson  •  Read more »   How a Trump presidency could give a big advantage to Chinese and Mexican factories One of his proposals would mean a lot more business for factories in foreign countries. By Max Ehrenfreund  •  Read more »   Lawmakers grill Mylan CEO over EpiPen price hikes By Carolyn Y. Johnson  •  Read more »   Fed holds off on raising interest rates The central bank says it will wait "for further evidence of continued progress" to raise rates. By Jim Tankersley  •  Read more »   The U.S. cities with the most to lose if Donald Trump starts a trade war New data illustrate the geographical divisions in the Republican Party. By Max Ehrenfreund  •  Read more »   ADVERTISEMENT   Recommended for you   Federal Insider Federal news and policy update, in your inbox daily. Sign Up »         Share Wonkbook:       Twitter      Facebook Trouble reading? Click here to view in your browser. You received this email because you signed up for a Wonkblog newsletter. For additional free newsletters or to manage your newsletters, click here. We respect your privacy. If you believe that this email has been sent to you in error or you no longer wish to receive email from The Washington Post, click here. Contact us for help. ©2016 The Washington Post, 1301 K St NW, Washington DC 20071