Federal Reserve maintains rates but sets stage for December hike

The Federal Reserve kept interest rates unchanged yesterday in its last policy decision before the US election, but signalled it could hike in December as the US economy gathers momentum and inflation picks up.

The US central bank’s rate-setting committee said the economy gained steam and job gains were solid. Fed policymakers also expressed more optimism that inflation was moving towards its 2% target.

“The committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued progress toward its objectives,” the Fed said in a statement following a two-day policy meeting.