WASHINGTON (Nov. 4, 2016) — The Federal Open Market Committee (FOMC) of the Federal Reserve is leaving a key interest rate at 0.25 to 0.5 percent, but hinted it might increase the rate when it meets in December.
Most but not all of the FOMC's criteria for raising the federal funds rate — the rate at which banks lend to other banks — are being met, the committee said in a statement Nov. 2 after its latest meeting.
“Although the unemployment rate is little changed in recent months, job gains have been solid,” the FOMC said.
“Household spending has been rising moderately but business fixed investment has remained soft.
“Inflation has increased somewhat since earlier this year, but is still below the committee's 2-percent longer-run objective, partly reflecting earlier declines in energy prices and in prices of non-energy imports.”
In determining adjustments to the federal funds rate, the FOMC will assess a wide range of information, including labor market conditions, inflation expectations and readings on financial and international developments, it said.