Fed sees foreign weakness as risk to US economy

WASHINGTON (AP) — Federal Reserve policy-makers discussed various risks to the U.S. economy at their December meeting but concluded that the big drop in oil prices was likely to end up boosting growth.

Minutes of the Fed’s Dec. 16-17 meeting show that Fed officials believed weakness in the global economy posed some of the biggest downside risks, particularly if it caused turmoil in global financial markets. But the Fed officials believed that overall, the sharp declines in oil prices would be beneficial to the economy.

The minutes showed Fed officials were concerned about over-reaction in markets to changes in their guidance about future rate hikes and decided to declare their view that the central bank intended to be “patient” in moving toward a rate hike.

 

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s