WASHINGTON: The Federal Reserve is keeping US interest rates at record lows in the face of threats from a weak global economy, persistently low inflation and unstable financial markets.

While the US job market is solid, global pressures may “restrain economic activity” and further drag down already low inflation, the Fed said on Thursday in a statement after ending a policy meeting.

Signs of a sharp slowdown in China and other emerging economies have intensified fear among investors about the US and global economy. And low oil prices and a high-priced dollar have kept inflation undesirably low.

The Fed’s announcement ended weeks of speculation about whether it might finally be ready to raise rates from the record lows it first set at the depths of the 2008 financial crisis.

At a news conference, Fed Chair Janet Yellen said a rate hike was still likely this year.

Published in Dawn, September 18th, 2015

On a mobile phone? Get the Dawn Mobile App: Apple Store | Google Play