FOMC Says ‘Soft’ Inflation Won’t Derail Hike in Dec.
The Federal Reserve on Wednesday kept its benchmark interest rate unchanged, as expected, and offered an upbeat assessment of the economy, hinting economic conditions were evolving broadly as they expected heading into the end of the year.
The Federal Open Market Committee’s post-meeting policy statement made no adjustments to its forward guidance but signaled policymakers viewed the economy as staying on track for a third interest rate hike by year’s end, as projected in September.
The vote to keep the fed funds rate in the 1.0% to 1.25% target range was unanimous. Randal Quarles, the newly appointed governor to the Fed Board, cast his first vote with the committee.
In its policy statement, the FOMC repeated that it “expects that economic conditions will evolve in a manner that will warrant gradual increases in the federal funds rate.”