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Fed Signals More Rate Hikes Coming Despite Trump’s Calls to Back Off - ABI

The Federal Reserve left its benchmark interest rate unchanged yesterday, keeping the rate in a range of 1.75 percent to 2 percent, but the central bank said the U.S. economy is “strong” and hinted that more rate hikes are coming soon, the Washington Post reported. President Trump has urged the Fed to keep rates low, but the central bank is an independent body, and Fed leaders have made it clear they intend to carry out their mandate to keep unemployment down and prices stable without political interference. Fed policymakers think the U.S. economy is on very good footing now and that the historically low rates that were put in place to aid the economy after the Great Recession are no longer necessary. “The labor market has continued to strengthen and…economic activity has been rising at a strong rate,” the Fed said in its statement yesterday, adding that it expects “further gradual increases” in interest rates.

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