Fed leaves key rate unchanged at Yellen’s final meeting
The Federal Reserve has left its benchmark interest rate unchanged but signalled that it expects to resume raising rates gradually to reflect a healthy job market and economy.
At Janet Yellen’s final meeting as chair Wednesday, the Fed kept its key short-term rate in a still-low range of 1.25 per cent to 1.5 per cent. It said in a statement that it expects inflation to finally pick up this year and to stabilize around the Fed’s target level of 2 per cent. In its previous statement, the Fed had predicted that inflation would remain below its target rate.
The Fed also indicated that it thinks the job market and the overall economy are continuing to improve.
“Gains in employment, household spending and business fixed investment have been solid,” its statement said.