Fed board leaves key rate unchanged

WASHINGTON — With a new Federal Reserve leader about to be announced, the Fed is keeping its key interest rate unchanged. But it is hinting that it’s preparing to resume raising rates as the economy shakes off the effects of recent hurricanes.

In a statement after its latest policy meeting ended Wednesday, the Fed left its benchmark rate in a low range of 1 percent to 1.25 percent. With the economy on solid footing, the Fed is expected to raise rates for the third time this year when it meets in December.

Overall, the Fed’s statement suggested a bright economic outlook, with steady if unspectacular growth and a healthy job market. It noted that a loss of U.S. jobs in September was directly related to hurricanes Harvey and Irma.

Economists have projected that the government will report a job gain of 310,000 for October — a dramatic rebound —on Friday.

President Donald Trump plans to announce today his choice to lead the Fed beginning in February. Jerome Powell, a Fed board member, is assumed to be the top contender.

“I think you will be extremely impressed by this person,” Trump said Wednesday.

Trump’s decision will be scrutinized for what it might mean for the direction of interest rates, and perhaps for the economy.

In selecting Powell, Trump would be deciding against offering a second term to Yellen, who has drawn wide approval for her performance as chair.

Powell has built a reputation as a centrist policymaker whose stance on interest rate increases would likely deviate little from Yellen’s cautious approach.