Post-Brexit the Fed says threats to the US economy are declining

It's opened the door for a rate hike in the near-future...

Post-Brexit the Fed says threats to the US economy are declining

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The Federal Reserve has left interest rates unchanged, but it could be considering a rate hike in the near future.

Its policy statement said that, "Near-term risks to the economic outlook have diminished," for the US economy - indicating that it is less worried about coming economic shocks, despite the Brexit vote.

It expressed increased confidence in the labour market following a strong jobs report in June.

The statement notes that household spending has also improved and that the overall economy is growing at a moderate rate.

Many policymakers have urged caution on raising rates as the country's economy continues to recover. The Fed noted that inflation expectations have not changed much in recent months.

Inflation in the US has been below the Fed's target rate for four years now.

If interest rates remain unchanged they are likely to hold until after November's US Presidential Election.

The Fed indicated in late-2015 that there would be a number of rate hikes during this year - but these plans were delayed by the turmoil that hit global markets during the first quarter of 2016.