Fed leaves key rate unchanged with economy rising at ‘strong rate’
Washington — Federal Reserve officials left US interest rates unchanged and stuck with a plan to gradually lift borrowing costs amid "strong" growth that backs bets for a hike in September. Economic activity has been "rising at a strong rate," and unemployment "has stayed low," the Federal Open Market Committee said Wednesday in a statement released in Washington. "Household spending and business fixed investment have grown strongly." While leaving rates on hold as expected, the committee repeated guidance for "further gradual increases" in its policy benchmark, lining up September’s FOMC meeting for the third hike of the year. President Donald Trump lashed out at the Fed last month, saying he was not "thrilled" it was raising rates. The comments threw a political cloud over the central bank’s decisions, though economists and investors had widely anticipated Wednesday’s decision. Policy makers "are not really affected or paying close attention to the political commentary", said Laur...
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