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Brexit ‘a factor’ in US holding interest rates

Janet Yellen vidThe US Federal Reserve yesterday decided to keep interest rates at between 0.25% and 0.5%, as affairs overseas affect domestic policy.

Slower employment is a key reason to hold off this time, while the risk of a UK exit from the EU is also persuading policy makers to stay their hands.

Fed chairman Janet Yellen said the Brexit issue is certainly weighing on the committee’s decision on US monetary policy.

She said: “I think it’s fair to say that it was one of the factors that factored into today’s decisions. Obviously how that turns out is something that will factor into future decisions.”

The prospect of a Brexit vote could prompt turmoil on global financial markets and traders in London are bringing in extra staff to work through the night after polls close on 23 June.

 

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