As expected, the Federal Reserve held off on raising interest rates at its policy meeting today, leaving the federal funds rate at 2 to 2 ¼%. The Federal Open Market Committee, the governing board of the Fed, left the door open for another rate hike in December.
“In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 2 to 2 ¼ percent,” the FOMC said in a statement.
However, the committee said it still expected to hike rates again this year.
“The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term. Risks to the economic outlook appear roughly balanced,” the FOMC said.
The FOMC raised rates a quarter-point at its September meeting, the third rate hike of 2018. At that meeting, Fed officials also projected a total of four hikes for 2018 and three next year.