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Fed keeps rates unchanged as it still eyes hikes this year
WASHINGTON (MarketWatch)—The Federal Reserve on Wednesday held its benchmark interest rate near zero, but central bankers believe improving U.S. economic growth is likely to warrant one or two interest rate increases before the end of the year.
Fed Chairwoman Janet Yellen said economy has managed to escape the “soft patch” of the first quarter.
The labor market is improving and some of the downward pressure on inflation from energy prices is abating, Yellen said, but added that more progress is needed before the central bank would be ready to pull the trigger and raise rates.
In a statement at the end of two days of talks, Fed officials were cautiously optimist about the economy.
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