Fed announces interest rate decision leaves open door for increase in December

The US Central Bank did not touch interest rates. The bank left an open door for interest rate increases in December. The November meeting of the Federal Open Market Committee (FOMC), which sets the monetary policies of the US Central Bank (FED), finished and FED kept the policy rate unchanged at 1.00 – 1.25 percent, as expected.

The Fed did not change its short-term interest rates, but pointed out that it would consider interest rate hikes before the end of the year in an environment with accelerating economy.

In a statement following the two-day FOMC meeting, the Fed pointed to recent improvements in economic growth, saying “Economic activity is growing strongly despite hurricane-related deterioration.” The Fed changed the “moderate” statement for economic growth to “strong momentum”. The FOMC took the decision not to change interest rates with a vote of 9 members.

In Fed’s statement, it was emphasized that hurricanes had possibly lead to temporary disruption in economic activity, inflation and employment, but it was unlikely that the storms would derail the course of the national economy in the mid-range.