The Federal Reserve kept interest rates unchanged on Wednesday in its last policy decision before the U.S. election, but signaled it could hike in December as the economy gathers momentum and inflation picks up.
No suprise from the the U.S. Federal Reserve. It kept interest rates unchanged in its last meeting before the presidential election. The Fed signaled, however, it could hike interest rates in December. The U.S. central bank did say the economy continues to improve and job creation is solid. Plus, inflation has gone up a bit since earlier this year. The big unknown: U.S. presidental elections. Nick Colas, chief market strategist at Convergex: (SOUNDBITE) NICK COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH), SAYING: "They are not so much worried about who wins or loses, but if it puts any kind of calm or even chill on the economy as people are really focussed on the uncertainty the election would there be on the business side or the consumer side. It's too early to tell that." In September, Fed Chair Janet Yellen said that an interest hike before year's end was likely as long as U.S. employment and inflation continued to strengthen. Since then, both, job gains and inflation have ticked higher. The economy also has gained momentum, growing at a 2.9 percent annual pace in the third quarter.