In their June meeting, the Federal Reserve Bank's Open Market Committee held pat on federal funds rates -- thereby keeping interest rates constant.
A key factor in the decision not to raise rates was a new downbeat forecast for the U.S. economy. The Fed downgraded growth projections: 1.8% to 2%, compared to March's estimate of 2.3% to 2.7%, a significant correction.
While the Fed has no concerns about inflation and acknowledges moderate improvements in the economy and housing market, it cautions that business investment has slowed and employment is a lingering concern.
The Fed may well begin to raise rates before 2016. Indeed, a majority of Fed members expect that to happen, and in the March meeting they indicated a possible rate hike in June. But at the June meeting, they again declined to raise rates.
Overall, with Connecticut's growth weaker than U.S. growth, especially regarding housing, this continued pause is welcome news to many sectors.