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Yao said the Fed should set objective conditions that will trigger a rate hike, such as inflation, unemployment and risks of property and housing bubbles.

Wall Street was up on Monday along with a rebound in European stocks.

Wiliams said that although the Federal Open Market Committee (FOMC) had voted to hold rates at last week’s meeting, it was a close call and he expected a rate rise later this year. Both said they expected a hike this year. “As we have outlined, the domestic economy...

Mike van Dulken, head of research at Accendo Markets, said investors are feeling uneasy after the Fed highlighted “concerns about external factors such as China, market volatility and deflation derailing a [U.S.] recovery”.

However, the central bank maintained its bias towards a rate hike sometime this year, while lowering its long-term outlook for the economy.

After a week of build-up, debate and second-guessing, the US Federal Reserve chose to keep interest rates on hold.

“We may continue to see a downward progression for stock markets, as investors adjust to a world where growth is expected to be weaker…”

“Leaving United States interest rates at rock bottom could mark a turning point for the relative performance of emerging and developed markets”, said analyst Jasper Lawler at CMC Markets UK.

Mike van Dulken, head of research at Accendo Markets, said investors are feeling uneasy after the Fed highlighted “concerns about external factors such as China, market volatility and deflation derailing a [U.S.] recovery”.

There are only two more meetings left for the Fed this year – in October and December – and it’s likely that the Fed might want to see a few more employment reports and monitor the Chinese markets before making the decision.

Over the next month the market’s “fixation is going to shift” away from Fed lift-off talk, he says, and toward figuring out how the US and global economy is doing and what the outlook is for third-quarter corporate earnings.

She cited concerns with market instability in Asian markets like China, where a market shakeup late last month sparked by the country deflating its currency, the yuan, caused acute anxiety with global investors and led some to worry that the United States could fall into another...

US Federal Reserve decided not to immediately hike interest rates, surprising many who had expected to see rate moving up in the world’s top economy after several years.

On Friday the rupee appreciated to a one-month high and bond yields fell to an over three-month low after the US Fed decided to keep interest rates unchanged in its meeting.

“Such exceptionally low real interest rates are unlikely to be appropriate for an economy with persistently strong consumption growth and tightening labor markets”, Lacker said in a statement.