The Fed Postpones Interest Rate Increase

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  • Federal Reserve. AP Photo/J. Scott Applewhite

    Federal Reserve. AP Photo/J. Scott Applewhite

    TEMPO.CO, Jakarta - The Federal Reserve (The Fed) has decided not to increase its interest rates next June. The decision was implied in a document on the Fed's Board of Governors' meeting, which was held on April 28 and April 29. The meeting minute was announced to the public in Washington DC on Wednesday, May 20, 2015.

    The document, according to a Reuters report, revealed that some of the Fed's officials believed that increasing the interest rate, which currently sits on a level of 0.25 percent, later in June would be too early despite the fact that the US economy has showed signs of improvements.

    Some official argued that weakening consumer spending in the US is proof that the economy will continue to slow down for quite a long time. Meanwhile, others believed that the US economy will improve soon enough

    The Fed's Board of Governors' meeting held last month also highlighted the central bank's dilemma in dealing with the fluctuating market if they had decided to increase the interest rate immediately. Therefore, the Fed decided that the interest rate will still be increased, but not in June.

    ABDUL MALIK