Fed, With 3 Officials in Dissent, Stands Firm on Interest Rates While Noting Improving Economy

On the meeting that finished on September 21 the Fed decided not to increase the interest rate. Some of the reason they gave for this was that the economy was not growing as much as they wanted it to increase before increasing the interest rate. But it looks like this is going to change very soon, because 14 of the 17 Fed officials surveyed anticipated at least one rate increase this year. This change is expected to happen in December, because even if the Fed have a meeting in November it finishes 6 days before the presidential elections and the Fed thinks that making a change in the interest rate that close to the election is not a good idea because they will both have big economic impacts. 

When Jannet L. Yellen was asked for the reasons for this decisions, the main reason for not increasing the interest rate was that the economy was not growing as fast as they were expecting to raise the rates. She said that they noticed that consumer spending was increasing very rapidly, but business investment was relatively weak, which is why the Fed was seeing that there is more room for improvement before they rise the rates. In the other hand one of the 3 officials from the Fed that didn't agree with did decision argued that; if the Fed waits longer to increase the rates they will need to move more sharply, which mean to change the rates faster, and that this decision will end up causing a recession.

Look at the article here: http://www.nytimes.com/2016/09/22/business/economy/fed-interest-rates-yellen.html