Fed hints at possible December hike
- 9 years ago
The Federal Reserve held off on raising interest rates Wednesday, but signaled a hike could come as early as December despite recent speculation that a slowing economy will prompt the central bank to wait until next year.
With job gains weakening markedly the past two months and the government expected to report third-quarter economic growth of less than 2% at an annual rate Thursday, the Fed's decision to keep its benchmark rate near zero was widely expected.
The central bank hasn't lifted the rate in nearly a decade and it's been near zero since the 2008 financial crisis.
But in a statement after a two-day meeting, the Fed said, "In determining whether it will be appropriate to raise the target rate at its next meeting," the Fed will assess progress toward its goals of maximum employment and 2% annual inflation.
With job gains weakening markedly the past two months and the government expected to report third-quarter economic growth of less than 2% at an annual rate Thursday, the Fed's decision to keep its benchmark rate near zero was widely expected.
The central bank hasn't lifted the rate in nearly a decade and it's been near zero since the 2008 financial crisis.
But in a statement after a two-day meeting, the Fed said, "In determining whether it will be appropriate to raise the target rate at its next meeting," the Fed will assess progress toward its goals of maximum employment and 2% annual inflation.