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Fed keeps rates unchanged - UPDATED

Fed keeps rates unchanged - <span style="color: red;">UPDATED

27 July 2016 20:27 (UTC +04:00)

Baku-APA-Economics. Since the last committee meeting in June, The U.S. central bank said the economy had expanded at a moderate rate and job gains were strong in June. It added that household spending also had been "growing strongly," Federal Open Market Committee stated in the report, APA-Economics reports.

Despite a strong rebound in job growth last month and an economy near full employment, most Fed policymakers had urged caution in raising rates until there was concrete progress in moving inflation toward the Fed's 2 percent target.

FOMC expects that the gradual adjustment of monetary policy, economic activity will grow and the labor market - strengthened. Inflation will remain low in the short term and the medium - will rise to 2%. "Near-term risks to the economic outlook have diminished," the Fed's policy-setting committee said.

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22:27

Baku-APA. The Federal Reserve left interest rates unchanged on Wednesday but said near-term risks to the U.S. economic outlook had diminished, opening the door to a resumption of monetary policy tightening this year, APA reports.

"Near-term risks to the economic outlook have diminished," the Fed's policy-setting committee said in its statement following a two-day meeting in which it left its benchmark overnight interest rate in a range of 0.25 percent to 0.50 percent.

The Fed's preferred inflation rate currently stands at 1.6 percent and has been below target for more than four years.