Fed leaves key interest rate unchanged

The US Federal Reserve System kept the key interest rate at a record low, from 0.0 to 0.25 percent per annum. At the same time, the Federal Open Markets Committee does not exclude that the key rate will be raised by the end of the year to 0.4 percent per annum.

The Fed raised the interest rate on June 29, 2006, and gradually reduced it in the period 2007-2008 until the base rate stabilized in December 2008 at the current level of 0.0 to 0.25 percent.

The Federal Market Committee noted that there are a large number of employment indicators, as well as data on inflation and inflation expectations, in addition to international financial and economic events that are keeping the Fed from raising the key rate. The decision to postpone the rate hike should support emerging markets, which have already faced capital outflows amid expectations of a strengthening US currency.

The Russian market was most vulnerable to the rate hike. He literally froze Thursday in anticipation of the Fed's decision. Although, it should be noted that a similar situation has developed in Germany and in the Asian markets.

In addition, an increase in interest rates in the United States could lead to bankruptcy of a number of American companies, which should have applied higher interest rates to corporate bonds. Going forward, as labor market conditions improve, the central bank is likely to raise interest rates. Finally, the central bank is likely to do this gradually.