[國際新聞] Federal Reserve holds U.S. interest rate steady committee, interest

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http://www.cbc.ca/news/business/ ... rest-rate-1.3232187

The Federal Reserve kept its benchmark rate unchanged on Thursday, dashing hopes among some economists that America's central bank would hike lending rates for the first time in nine years.

The Fed kept its funds rate in a range between zero and 0.25 per cent, the same level it's been at since December 2008.

"The committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen some further improvement in the labour market and is reasonably confident that inflation will move back to its two per cent objective over the medium term," the Fed's open market committee said in a statement.

Central bankers at the Fed meet every six weeks to decide on America's monetary policy. After standing on the sidelines since slashing rates to the bone in the last recession, there was much speculation that the central bank might move to raise interest rates for the first time in nine years.

Economists polled by Bloomberg had said there was about a 30 per cent chance of a rate hike today. The last time the Fed hiked interest rates was in June of 2006. After cutting it down from there, it hasn't moved its benchmark rate since December 2008 — a stretch of "2,466 days and counting," CIBC economist Andrew Grantham noted after the decision came out on Thursday.

Fed chair Janet Yellen explained the bank's rationale in standing pat at a press conference this afternoon. (Andrew Harrer/Bloomberg)

Despite the inaction, there's a growing body of evidence to suggest the Fed is getting ready to hike, however. Thirteen of the 17 members on the Fed's open market committee are still saying a rate hike would be appropriate some time in calendar 2015, which means they're running out of time.

"There were hints that a gradual tightening cycle is close," Grantham said. "All told, it looks as if rates are still set to start rising this year, however there'll only likely be one move and we'll await Yellen's comments regarding whether this is more likely to occur in October or December."

Yellen was outlining the Fed's line of thinking at a news conference following the policy decision at 2.30 p.m. ET on Thursday.