U.S. Fed leaves rates unchanged

The U.S. Federal Reserve left interest rates unchanged and stayed on course to hike in December as strong economic growth, higher tariffs and rising wages look set to spur inflation. 

The unanimous 9-0 decision left the benchmark federal funds rate in a target range of 2%-2.25%. The interest rate the Fed pays banks on excess reserves was left unchanged at 2.2%, as expected, Economic Times reported.

The central bank said “economic activity has been rising at a strong rate” and job gains “have been strong,” acknowledging a drop in the unemployment rate, while repeating its outlook for “further gradual” rate increases in its statement. 

Risks to the outlook appear “roughly balanced,” the Federal Open Market Committee said. Inflation expectations, which have slipped slightly in recent weeks according to some measures, were described as “little changed, on balance.”