Fed Keeps Rates Unchanged, Sees “Diminished Risk” in U.S. Economy

hamilton-zanze July 27, 2016

The Federal Reserve voted to leave the benchmark federal-funds rate unchanged at 0.25 – 0.50%, but noted the labor market has “strengthened.” After its two-day meeting, the central bank said “near-term risk to the economic outlook have diminished,” leaving the door open to an increase later this year, possibly as early as September.

The pace of hiring bounced back in June to a gain of 287,000 jobs from just 11,000 in May. Officials described household spending as having been “growing strongly,” and economic activity as expanding at “a moderate rate.”