Fed holds interest rates, signals further hikes ahead

Economy 11/8/2018, 8:00 PM
Fed holds interest rates, signals further hikes ahead

The Federal Open Market Committee decided to hold interest rates unchanged, the central bank announced on Thursday. Policymakers unanimously opted to hold the federal funds rate in a range of 2% to 2.25%, while it is widely expected to hike rates at its December meeting by a quarter point.

In its statement, the Fed said that "economic activity has been rising at a strong rate" and noted unemployment has been dropping while adding it expects further gradual hikes. "The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced," the Fed said.

Breaking the News / JC

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