In the face of threats from a weak global economy, persistently low inflation, and unstable financial markets, the Federal Reserve is opting to keep U.S. interest rates at record lows.
"I do not want to overplay the implications of these recent developments, which have not fundamentally altered our outlook," Federal Reserve Chairwoman Janet Yellen told reporters during a press conference Thursday.
"The economy has been performing well and we expect it to continue to do so," she said.
Stephen Moore of the Heritage Foundation shared his thoughts on Thursday's Fed announcement. Click play for his comments.
Six and a half years ago, the Fed set the interest rate at the unprecedented level of near zero in an effort to boost the economy. The economy has grown and the Fed had previously hinted that this year might be an appropriate time to raise the rates.
ABC News reports that Richmond Fed President Jeffrey Lacker issued the lone dissenting vote, calling for a quarter-point rate hike.
In a September 4 address he said, "I'm not arguing that this economy is perfect by any means, but nor is it on the ropes, requiring the stimulus of low monetary policy interest rates to get it back into the ring."
"It's time to align our monetary policy with the significant economic progress that we have made," he concluded.
Earlier Stephen Moore, CBN News contributor, discussed whether increasing interest rates will affect the economy.
"In my opinion it doesn't matter all that much whether they do or don't," Moore said.
"Now I think they probably should because if they decide not to raise rates after telling us for the past six months they were going to do it, that only adds to the sense of panic that investors are going to have," he explained.
Moore said the slow economic growth rates over the past six years reveal there is no evidence that lower interest rates actually boost the economy.
"This has been the worst recovery from a recession we've had since the 1930s," he continued. "Where is the evidence that these low interest rates have been healthy for the economy? I don't see any evidence."
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