The US Federal Reserve has kept its interest rate at the level of 0.00-0.25 % per annum, citing concerns about the weakness of the world economy, but can still increase borrowing costs later this year.
At a press conference after the Fed meeting, the head of the US central bank, Janet Yellen, said the US economy is showing good momentum to probably justify a rate increase.
However, Yellen added that "the outlook for other countries does not look so certain", which causes the US stocks reduction, dollar growth and tighter financial situation, so that it may slow the growth of the US economy regardless of the Fed's actions.
"Amid the growing uncertainty abroad, the Committee considers it reasonable to wait - said Yellen. - Given the considerable economic and financial ties between the US and the rest of the world, the situation abroad should be closely monitored."
The statement following the meeting also indicates the problems abroad, while in relation to the United States itself, economic risks are virtually balanced.
"The recent global economic and financial events may somewhat restrict economic activity and put further downward pressure on inflation in the short term," – is said in it.
At the same time the Fed left the option to raise the rate this year: 13 out of 17 leaders responsible for the monetary policy of the US central bank consider it possible to raise rates at least once in 2015, compared with 15 in June. Four felt that the rate should not rise until at least 2016, compared to two in June.
Federal Committee on Open Market Operations will meet in October and December.
The Fed repeated that it wanted to see "further improvement in the labor market" and to be "fairly confident" about inflation return to 2 % level of the central bank, taking a decision on the timing of a rate hike.
The dollar fell to a basket of world currencies after the Fed statement, declining by about 1 % against the euro. Stocks initially rose, but then lost the direction of movement; prices of US government bonds soared.
The new forecast published by Fed, assuming a slower growth of GDP than previously expected, low unemployment and weak inflation, suggests that the leadership of the central bank begins to worry about the long-term stagnation of the economy. One of the leaders of the Federal Reserve even suggested a negative key rate.
According to the new estimates of the Fed, the US economy will grow in 2015 by 2.1 %, which is slightly more than previously forecast. However, forecasts for 2016 and 2017 have been revised downwards.
The trajectory of changes in interest rates moved down: long-term value of the key indicator now stands at 3.50 % per annum compared to 3.75 %, which was expected after the previous meeting.