Federal Reserve keeps rates unchanged

The Federal Reserve (the U.S. central bank) decided today, Wednesday, to keep interest rates unchanged, as expected, preferring to postpone any changes in borrowing costs until after the U.S. midterm congressional elections scheduled for next week, pending the release of further data on the inflation trajectory.

The U.S. central bank, in a decision approved by 10 votes to 2, said it would keep the benchmark interest rate within its current range of 3.75% to 4%. It acknowledged that inflation “remains high,” upgraded its assessment of economic performance, and hinted at the possibility of further interest rate hikes, depending on developments in inflation.