Fed holds rates steady, sets stage for December hike

Washington

THE Federal Reserve kept interest rates unchanged on Wednesday in its last policy decision before the US election, but signalled that it could hike in December as the economy gathers momentum and inflation picks up.

The US central bank said the economy had gained steam and job gains remained solid. Policymakers also expressed more optimism that inflation was moving towards their 2 per cent target.

"The committee judges that the case for an increase in the federal funds rate has continued to strengthen but decided, for the time being, to wait for some further evidence of continued…