US Federal Reserve leaves rates unchanged

The US Federal Reserve left its benchmark interest rate unchanged in a range of 1.25% to 1.5%, a relatively low level that the Fed said would help support continued job growth and stronger inflation.

The Fed’s economic outlook remained relatively upbeat, setting the stage for a rate hike at its next meeting in March. But the decision to hold steady in January, while widely expected, underscored that the Fed still regards the economic expansion as fragile and in need of assistance, the New York Times reported.

The announcement brought down the curtain on Janet Yellen’s four-year tenure as the Fed’s chairwoman, who will step down on February 3. The Fed said that her successor, Jerome Powell, a Fed governor since 2012, would take the oath of office on Monday morning.

Most Fed officials predicted in December that the Fed would raise rates at least three times in 2018. Some analysts predict a fourth increase, citing a strengthening economic outlook.