Fund manager reaction: Where now for rates after Fed hold?

Global concerns weighed on decision

Industry commentators have responded to the Fed's 'dovish tone' as it decided to keep rates on hold in September, but said a December rise still looks the most likely option.

The Federal Open Market Committee (FOMC) decided not to raise interest rates this month, as global headwinds overshadow a stronger domestic picture. Following its two-day September meeting, the FOMC voted by 9 to 1 to keep rates on hold, in a move anticipated by markets. The Federal Funds Rate has been kept on hold at 0-0.25% since the darkest days of the financial crisis in December 2008. However, the FOMC decided now was not the right time to raise rates as concerns over the impact of a global economic slowdown outweighed a healthier picture for the US domestic market. In a st...