The Federal Reserve signalled that an increase in short-term interest rates is in prospect as soon as its next meeting amid a pick-up in inflation, even as it held rates unchanged yesterday.
The US central bank kept the target range for its benchmark rate at 0.25-0.5 per cent as it avoided stirring up markets just days ahead of the presidential election.
But in its post-meeting statement, the central bank reiterated that the case for a rise has “continued to strengthen”, adding that it was now just waiting for “some” further evidence of progress before pulling the trigger. The Fed’s next meeting — its final of the year — is on December 13-14.