Federal Reserve officials cited worries that economic activity could be

“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term”, the Fed said in its statement.

Crude oil prices fell sharply as speculators took profits ahead of the week-end and after a strong, almost 6% gain on Wednesday, following an unexpected drawdown in inventories.

For emerging markets, especially in Africa, a hike in interest rates could be grave.

Many had expected an “as you were” decision would boost precious metal prices.

Bill Waite, at the economics consultancy Semnia, said. Williams said of the decision during a speech in Armonk, New York.

Concerns about China are mainly two-fold: Some fear that an increase in USA rates could drive capital out of the Chinese ecosystem at a time when domestic growth is already slowing. Traders will continue to focus on US labor data and consumer inflation.

USA stocks dropped in morning trading Friday as investors consider the implications of the Federal Reserve’s decision to hold off raising interest rates.

The rate – which can affect lending rates worldwide – has been kept near zero for nine years in a bid to revive the United States economy.

The Fed indicated in its policy statement trepidations about recent turbulence in financial markets and in economies overseas . Economists were not surprised by the inaction, considering many predicted the Fed would wait until December. The Standard & Poor’s 500 dropped 22 points, or 1.1 percent, to 1,967 and the Nasdaq composite declined 41 points, or 0.8 percent, to 4,852.

“On balance, labour market indicators show that underutilisation of labour resources has diminished since early this year“, officials said. The Fed’s forecast still foresees inflation accelerating to a 1.7 percent increase next year, still below its 2 percent target.

The three major USA indexes all hit session highs, rising more than 1 % for a while during Fed Chair Janet Yellen’s 2.30 p.m. press conference. Its stock fell 83 cents, or 1 percent, to $84.45.

But inflation will remain even lower than forecast in June. Anticipating a hike in the Fed interest rates, several investors started pulling out of some emerging markets but their expectations were cut short. The Fed’s benchmark rate has been held in a range of zero to 0.25 percent since December 2008.