Fed Keeps Rates Unchanged, September Rate Hike Not Ruled Out

By Jeffry BartashMarketWatch Pulse

The Federal Reserve voted unanimously to keep a key U.S. interest rate unchanged, but top central bankers were more upbeat about the economy in a sign that a widely expected rate hike could still come in September. "The labor market continued to improve, with solid job gains and declining unemployment," the Fed said in a statement after top officials met on Tuesday and Wednesday. The vote to leave rates alone was unanimous. Fed policymakers next meet on Sept. 16-17. A majority of economists predict the Fed will move then to raise the key fed funds rate, now hovering near zero, if U.S. growth remains on an upswing.

Copyright © 2015 MarketWatch, Inc.

Continue Reading Below