Federal Reserve Chair Janet Yellen held off raising rates Thursday citing uncertainty abroad as the main factor. Yellen stated recent turbulence among various foreign economies, specifically China's growth decline and falling commodity prices, has altered the Fed's outlook.
Despite the Fed choosing not to hike rates at the September meeting Yellen did go on to highlight the current strength of the U.S. economy saying wages will rise and inflation will inevitably return to the 2 percent goal as the already strong labor market tightens even more.
Yellen continued to state the Fed expects to increase rates later this year and that even October is a possibility however analysts across the board are calling this bluff as odds of a rate hike at the October meeting are around 20 percent.
"The Fed Chair is likely to remain ever cautious until the December meeting where a rate hike will become a real possibility", says Voya Global.
