The Federal Reserve on Wednesday kept interest rates unchanged, as expected, but policy makers said the case for a rate hike has strengthened.
FOMC members voted 8 to 2 to maintain interest rates in a range of 0.25 to 0.5%.
“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 further progress toward its objectives,” the Fed said in its policy statement.
It was the first time the Fed qualified such a statement to say that only “some” further evidence was needed.
Analysts say that as long as inflation continues to pick up the Fed will hike interest rates at its December 13-14 meeting.
This will give the markets time to digest a potential shock if “status quo” presidential candidate loses to GOP man Donald Trump.
Cleveland Fed President Loretta Mester and Kansas City Fed President Esther George dissented for a second meeting in a row, but Boston Fed President Eric Rosengren was on board this time – rttnews.
The post FOMC: policy makers said the case for a rate hike has strengthened. USD rally over? appeared first on forex-analytics.press.